Turkish people issue their own money!

Turkey’s small business owners have a very different approach to money: They issue their own! This is the main reason why Turkey has always been mildly affected by big banking crises.

Approximately 1 million small enterprise owners create money in the form of future dated IOUs and bank checks. They create perhaps twice the Turkish Central Bank issued M3 money. Exact multiple is not known by anybody.

By the end of 2018 , forward checks, or “Vadeli Ceks”, as they are called in Turkey, have a face value of 940 Billion TL [numbers are revised in 2019], and are the main B2B payment method among small and mid sized businesses. Although they carry the name “check”, these instruments are in reality public issued banknotes.

The SMEs are the main actors in Turkey’s economy as more than 21 million Vadeli Çeks have been issued by the owners of SMEs through 2018. Although no data exists on their velocity, many think it is at least 5, more likely 6 or 7. If we use 6 as the average, at least $1 Trillion worth of Vadeli Çeks change hands in one calendar year (940B TL x 6 = almost one trillion dollars by Dec 2019 rates). But nobody has the exact velocity numbers, since these Vadeli Çeks are not recorded anywhere. Average check is worth 35,000 TL, i.e. $6000.

Turkey’s own analog blockchain of peoples’ money, Vadeli Çeks created a mostly undocumented economy of approximately $1Trillion in 2018.


This is equal to 8 times the global bitcoin market! ($125B Dec 2019).

NOTES: In this calculation I used 6 for average velocity of checks. Furthermore, they are partly undocumented since perhaps only half of the transactions are invoiced! Paper and metal currency level in Turkey is 140 BTL (M0). Including this, and the short-term bank accounts, the money in circulation (M1) is 450 BTL as of 2018. As of December 2019, total money & credit (M3) according to Turkish Central Bank =2.5 Billion TL. We can safely say, money issued by people of Turkey is more than twice the money issued by the Turkish banks.

Blockchain artist, entrepreneur

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