Bitcoin Searches Spike in Turkey as Central Bank Chief Fired, Lira Plummets

Bitcoin-related Internet searches are jumping in Turkey after President Recep Tayyip Erdoğan’s ouster of the nation’s top central banker sent the local currency, the lira, plunging in foreign-exchange markets.

The Google search value for the term “Bitcoin” more than quadrupled to 100 on Sunday after Erdoğan dismissed central bank governor Naci Agbal, triggering fears of a sharp slide in the lira (TRY).

The lira plunged at least partly on concerns the new top central banker might implement capital controls as a way of tamping down the nation’s high inflation rate. Such a move would represent an alternative to implementing rate hikes, which are known to preserve the fiat currency’s value.

It’s possible some Turks see bitcoin (BTC, -4.88%) as a way to deal with any potential capital controls or as a store of value if inflation accelerates or if the currency’s value falls further against global counterparts.

At press time, Google Trends, a barometer for gauging general or retail interest in trending topics, was returning a value of 41 on “Bitcoin” – still significantly higher than the levels seen last week. Meanwhile, search values for gold remain flat in Turkey in the wake of the latest financial upheaval.