BTC Critic Erdogan vs. Crypto Enthusiast Kilicdaroglu

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The presidential elections in Turkey (May 14) could play a central role in the future financial situation of the country. They could also affect the local cryptocurrency industry since the two main candidates Recep Erdogan (the current political leader) and Kemal Kilicdaroglu share totally different views.

The former declared war on bitcoin in 2021 and backed central bank efforts to launch the digital lira. Kilicdaroglu stands on the opposite side as a supporter of cryptocurrencies and Web3.

A real chance for a change

Turkey’s upcoming presidential elections this weekend appear to be the most contested in more than a decade, with Erdogan facing a powerful rival, Kilicdaroglu.

The current president has been in charge since 2014 and has been heavily criticized for some of his policy decisions. On the one hand, it has taken the country down a conservative path, distancing it from the Western world and maintaining close ties with Russia (even though Turkey is part of NATO).

The transcontinental nation’s shaky economic situation during his reign could be another point used by the opposition. Turkey’s inflation rate is one of the highest in the world, while its official currency, the Turkish lira (TRY), recently plunged to a record low against the US dollar.

Kilicdaroglus’ political vision seems to be entirely different from Erdogans’. He vowed to bring freedom and democracy to Turkey, saying that is what the youth want.

We want free media and full judicial independence. Erdogan does not think so. He wants to be more authoritative. The difference between us and Erdogan is the difference between black and white, he told the BBC.

In addition to being the preferred choice of younger generations, the 74-year-old politician could win strong support from the Kurdish minority since the Peoples’ Democratic Party (HDP) would rather see him as president than Erdogan. About 15% of Turkish voters are of Kurdish origin.

According to a recent poll, Kilicdaroglu could get around 49% of the vote on May 14, while Erdogan could get 43%. Still, a candidate needs more than 50% to be elected, meaning a runoff could be expected.

Pre-election trend, Source: PolitPro

Another major difference between Erdogan and his rival is their stance on cryptocurrencies. In the following lines, we will observe how the election results could affect the national digital asset sector.

War against BTC for five more years

President Recep Erdogan said in September 2021 that the government is at war with cryptocurrencies and has absolutely no intention of adopting them.

We won’t give them such a bounty, and neither will we. Because we will continue on the road with our money, which is our main identity in this matter, he added.

Recep Erdogan, Source: NTV

Turkey is also among the many countries that have not imposed comprehensive oversight of the digital asset industry. The lack of rules was one of the factors that led to the multi-billion scandal linked to the crypto exchange Thodex.

According to multiple sources, the CEO of the entity defrauded customers of $2.6 billion and left the country. He was captured in Albania two years later and sent back to his native country to face justice.

Despite Erdogan’s hostile stance on crypto and the chaotic regulatory environment, Turks have shown a growing appetite for digital assets (seen as an alternative to TRY depreciation). In fact, interest increased after every time the government introduced anti-crypto policies.

However, it remains doubtful (given his controversial views) that the current president will change his stance on the matter and give the crypto his blessing.

The opposite scenario

The potential victory of Kilicdaroglus could significantly boost the domestic crypto industry as the candidate has pledged to let it thrive. He is also fond of Web3 technologies, stating:

As soon as we come to power, we will lift the ban on PayPal and develop Web3 platforms. Entrepreneurial ecosystems will be our main stakeholders. We will end the economic, scientific and political interregnum in Türkiye.

A country where our entrepreneurs and young people can exist freely is very close. We will do it with the brightest minds in the world and in our country.

Kemal Kilicdaroglu, Source: The Guardian

Furthermore, Kilicdaroglu criticized the central banks’ decision to ban crypto as a payment method within Turkish borders.

I talked to different stakeholders all day. Blockchain and crypto are the only areas where our billion-dollar (Unicorn) initiatives will emerge, he added.

It is safe to assume that Turkish crypto enthusiasts would be among Kilicdaroglu voters this weekend.

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