GYİAD Research Institute discussed the fact of cryptocurrency

Young Executives and Business People Association (GYİAD) Research Institute Co-President Şafak Herdem discussed the activities to subject the cryptocurrencies to legal regulations, and the cryptocurrency fact in terms of the discussions on whether these products are a currency or commodity or not, as well the cyber threats.

Stating the fact that cryptocurrencies cannot be ignored anymore due to the inevitable effect of the technology and digital transformation, and these instruments that are not managed by a central regulatory authority create user-focused value gain, GYİAD Research Institute Co-President Şafak Herdem discussed the check regulations against the cryptocurrency fact.

Underlining that the cryptocurrencies continue to spread rapidly, Mr. Herdem pointed out the checks and cryptocurrencies that are the inevitable payment tools of the commercial life for a long period and are subjected to various regulations due to suffers.

Stating that in our laws, the checks are indeed defined as a payment tool, however the checks with future dues are used as a credit tool instead of as a payment tool, Şafak Herdem emphasized that such credibility is not sufficient as an assurance on the payability of the future-dated checks even the counterfeit in check is prevented through 2d-barcode checks through the recent regulations and the regulations enabling instant access to the information on the credibility of the check issuer are done.

Stating that due to the laws, the banks are obliged to pay an amount of 1410 TL per each check page for the dud checks, GYİAD Research Institute Co-President Şafak Herdem emphasized that although such amount changes in every year, the banks are not capable of assuring the check owner. Explaining that the most effective method to eliminate this risk is the cryptocurrency to be generated by the bank for its customer, the institute pointed out the relation between the cryptocurrency and check, and listed that this can be achieved in the basis of application.

Check and cryptocurrencies as payment means

• For each customer to whom check book is given with cryptocurrency, different sizing methods will be used.
• The amount of the cryptocurrency that can be converted into cash at the relevant rate will be determined according to the credibility of the customers to whom the bank delivers check book.
• Retaining at the bank both as credit or cash guarantee, and reserving the future-dated check after it is notified to the relevant bank will minimize the risk of future-dated dud checks.
• In this system, the person A will enter into the obligation to purchase a cryptocurrency reserve at a certain rate (or to use credit) against the check book received from the bank B.
• This cryptocurrency will be used as to enable the cryptocurrency to be evaluated together with the other financial instruments of the bank.
• During this period of time, the person C who receives the check issued by person A with a due date, for example, six months, will immediately present the check to the bank where he has check account or learn the cash amount of the cryptocurrency through 2d-barcode application.
• May accept or reject the payment offer of the person A with check, and will be able to request the cryptocurrency amount from the bank without waiting the due date of the check.

Şafak Herdem stated that such an application will have a function to minimize the suffers exposed as a result of the usage of check as a credit instrument, as well a positive effect on the credibility risk of the bank in terms of the customers to whom it gives check book.