Turkey Takes the Lead in Stablecoin Buying Share vs. GDP

Turkey has surpassed the United States as the country with the highest share of stablecoin purchases relative to its GDP, according to a report by blockchain intelligence firm Chainalysis. Stablecoin purchases in Turkey accounted for 4.3% of its GDP between April 2023 and March 2024, making it the world’s biggest spender of stablecoins relative to its GDP. In comparison, stablecoin buying in the U.S. accounted for only 0.5% of its GDP, ranking it fourth on the list. The report also highlighted that stablecoins, such as Tether and USDC, have surpassed Bitcoin and Ether in transaction volume, representing over 50% of all transactions in recent months.

The report suggests that the increase in stablecoin transactions reflects their utility in everyday transactions outside of trading. The U.S. has been the largest jurisdiction for stablecoin transactions in the past year, with fiat purchases of stablecoins surpassing $20 billion in March 2024, a growth of at least 200% since April 2023. Similarly, other major jurisdictions like the European Union, Turkey, the United Kingdom, Brazil, and Thailand have also seen significant increases in fiat purchases of stablecoins.

Chainalysis analysts attribute the growing popularity of stablecoins to local currency volatility and devaluation. In the case of Turkey, the country’s inflation rate reached as high as 67% in March, prompting residents to turn to stablecoins like USDT to protect their savings from currency depreciation. This trend highlights the role stablecoins play in preserving wealth during times of economic uncertainty.

The size of the stablecoin market in the Turkish economy is notably larger compared to other economies analyzed by Chainalysis. For instance, stablecoin purchases in Thailand and Georgia accounted for 1.3% and 0.7% of their GDP, respectively, over the same period. The European Union and the United Kingdom had shares of 0.3% and 0.1%, respectively.

To provide context, Chainalysis clarified that stablecoin activity does not directly impact GDP, but expressing it as a percentage of GDP helps readers understand the scale of stablecoin transactions in relation to the overall economy. The report highlights Turkey’s dominance in stablecoin purchases relative to its GDP and the widespread adoption of stablecoins for everyday transactions worldwide.