Turkish President Recep Tayyip Erdogan has just appointed Fatma Ozkul, a professor specializing in crypto assets and blockchain, to the monetary policy committee of the Turkish central bank. This decision, announced by presidential decree on December 22, comes in a context of high inflation in Turkey and the dynamism of the Turkish crypto market.
Erdogan chooses crypto expert to serve on central bank board
Since 2012, Fatma Ozkul has taught at Marmara University in Istanbul. His extensive academic research covers crucial areas such as accounting, finance and auditing, but also focuses on recent innovations including blockchain and digital assets. In 2022, she also signed a reference work on crypto accounting.
Her nomination within the body responsible for defining the key rate of the Turkish central bank comes at the right time, as Turkey seeks to stem galloping inflation. On December 21, the monetary committee also increased its key rate by 2.5 percentage points, bringing it to 42.5%.
Furthermore, the arrival of Fatma Ozkul is part of the continuity of the policy put in place since the re-election of Erdogan to the Turkish presidency in May 2022. The head of state has indeed made changes at the top of the central bank, with the appointment of former Goldman Sachs banker Hafize Gaye Erkan to the post of governor.
The arrival of Fatma Ozkul should not fundamentally change the direction of Turkish monetary policy. It nevertheless reflects Turkey’s desire to position itself on financial and monetary innovations linked to blockchain.
Crypto boom in Türkiye
According to a report from Chainalysis, Turkey ranks 4th in the world in crypto transaction volumes. Between July 2022 and June 2023, no less than $170 billion in crypto trading was recorded in the country.
Faced with this popular enthusiasm, the authorities are increasing initiatives in the field of crypto. The central bank launched in 2021 a platform dedicated to digital Turkish lira transactions. At the end of 2022, it conducted conclusive tests of this digital currency.
On the regulatory side, the government now plans to strictly regulate the crypto sector in order to prevent possible abuses. It focuses on licensing players as well as taxing them. This dual objective aims to both limit the risks of fraudulent use of cryptos while removing Turkey from the “grey list” of the International Financial Action Task Force (FATF).
The new rules envisaged could thus impose reinforced requirements on players in terms of capital, digital security or conservation of assets.
Regulation that is both flexible and protective will be essential to allow Turkey to take full advantage of the financial revolution driven by cryptos. And the presence of Ozkul at the heart of Monetary Institutions will make it possible to provide all the expertise necessary to carry out the this financial transition.
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