Inflation talk floats around the globe nonstop. While the U.S. continues to fight inflation through interest rate hikes and the like, countries elsewhere are trying their best to halt ongoing fiat plunges. Turkey’s current debt crisis is a prime example of this; the Turkish lira has tanked in value for the last several years. Luckily, though, the advent of crypto is making hedging against these bearish periods easier on citizens. Turkish people have been hip to this asset class, embracing a grip of cryptos in order to cease losing wealth. Shiba Inu (SHIB-USD) has been one such currency. In fact, the token has become so popular that the Turkish government is having serious talks about accepting it.
There are many factors behind the ongoing debt crisis in Turkey. The country’s current account deficit grew throughout the 2010s as its imports vastly outnumbered exports. What’s more, its debt has been worsened by events like U.S. tariff price hikes. Influenced by both domestic and foreign developments alike, the complex crisis has amounted to a great deal of suffering for the lira. Turkey’s official currency has seen massive inflation in the last decade. Since 2016, the inflation rate of the lira has grown to a whopping 185%.
Luckily for Turks and others suffering from inflation, though, crypto has become an easy way to hedge against volatility. As such, Turkish people have been buying crypto with fervor. Bitcoin (BTC-USD) and Tether (USDT-USD) have been popular choices, for obvious reasons. Bitcoin is the largest crypto by far and proven as a great long-term holding. Tether, the largest stablecoin in the world, is also a safe way to retain one’s wealth with its $1 USD peg.
Shiba Inu Acceptance Is Becoming More Realistic
One of the more unexpected ways Turks are hedging against falling lira values is the pupcoin Shiba Inu, however. Back in late 2021, CoinDesk reported that SHIB was competing closely with Bitcoin and Tether as one of the most popular trades for Turkish investors. Now, it looks like the government may be ready to take the next step with the token.
The relationship between Turkey and cryptocurrency has historically been quite contentious. The Turkish central bank has been quite bearish on crypto, pushing for full-scale bans on digital assets. At the same time, President Recep Tayyip Erdoğan has been fighting on behalf of country-wide crypto adoption.
While trading is more restricted within Turkish borders than other nations, SHIB popularity continues to increase steadily in the country. In January, Turkish crypto exchanges ramped up this popularity by natively listing the token. Now, the government itself is taking interest in the asset; Turkey’s finance minister met with a Turkish Shiba Inu influencer this week to discuss widespread adoption of the currency.
Without much in the way of details, the meet appears quite bullish for SHIB adoption. The Turkish government is obviously taking interest in its citizens’ investments and the ways in which it can alleviate plummeting lira values. In the wake of the news, SHIB is posting slight losses. As of today, the token is down 6%, with a slight drop in trading volume.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.