Turkey bans crypto payments and Bitcoin feels the pain

Bitcoin fell more than 4% after Turkey’s central bank banned the use of cryptocurrencies to pay for goods and services.

Bitcoin tumbled more than four percent on Friday after Turkey’s central bank banned the use of cryptocurrencies and crypto assets for purchases, citing possible “irreparable” damage and transaction risks. In legislation published in the Official Gazette, the central bank said cryptocurrencies and other digital assets based on distributed ledger technology could not be used, directly or indirectly, to pay for goods and services. The decision could stall Turkey’s crypto market, which has gained momentum in recent months as investors joined the global rally in Bitcoin, seeking to hedge against lira depreciation and inflation that topped 16 percent last month.