Legal assesment of blockchain technology in digital payment systems

In order to meet the fundamental needs of individuals living within a society, a form of compensation has been required. Within the framework of supply and demand balance, individuals have attempted to fulfill their needs through mutual exchange. In ancient times, individuals met their needs by offering a price to other members of society in exchange for goods, thus conducting barter transactions. Over time, the mutual exchange of goods between individuals was replaced by the use of valuable items such as gold and silver as a medium of exchange. With the advent of the modern era, paper and coin money began to be used in trade instead of valuable goods, and money became the medium of exchange in the buying and selling of goods. The development of technology has brought significant innovations not only in fields such as science, education, and healthcare but also in finance and commerce. With digitalization, the physical use of money in the economy has decreased, and electronic payment systems have become more prevalent. Individuals increasingly perform payments through digital systems such as credit cards in exchange for goods. Recently, particularly due to time advantages, social restrictions caused by pandemics, and benefits related to cost-performance, there has been an increase in electronic shopping via the internet. Physical buying and selling of goods has been replaced by electronic commerce, and the use of virtual cards has come to the forefront. The advancement of information technologies has also created a virtual realm in the concept of money, and cryptocurrencies classified as virtual money have begun to spread globally. Powered by blockchain technology, cryptocurrencies have become popular as an investment tool among individuals and have started to gain value in the economy. The acceleration of electronic commerce worldwide and consequent changes in post-purchase payment systems have necessitated the establishment of a legal infrastructure for these applications in Turkey as well. Accordingly, the Law on Payment and Securities Settlement Systems, Payment Services, and Electronic Money Institutions numbered 6493, dated June 20, 2013, was promulgated. This law aimed to create a legal framework for digital payment systems, payment service providers, and virtual payments based on electronic commerce. The Law on the Regulation of Electronic Commerce numbered 6563, dated October 23, 2014, subjected electronic commercial services to a regulatory framework distinct from existing commercial relations. However, the evolution of information systems has also brought changes to the concept of money used in commerce, and current legal regulations have proven insufficient in terms of how the practice will be conducted and how sanctions will be applied in this area. Moreover, the increasing interest in cryptocurrencies has necessitated legal regulation, leading to significant provisions regarding crypto assets and crypto asset service providers being introduced in the Capital Markets Law numbered 6362. The aim of this study is to examine whether the blockchain technology, as a technological innovation, can be implemented in payment systems, the resolution of potential disputes arising from its implementation, and the relevant legal regulations. The study first discusses payment systems and digital payment instruments, focusing on whether cryptocurrencies, particularly Bitcoin, can be used as a means of payment in trade and e-commerce, in other words, the usability of cryptocurrencies as a payment instrument. Subsequently, the advantages and disadvantages of blockchain technology and its applicability as a digital payment system will be analyzed, alongside potential problems and proposed solutions. Examples from comparative law will be evaluated, and recent regulatory developments in Turkish legislation regarding crypto assets will be discussed, including the legal and administrative liabilities of crypto asset service providers and the compensation provisions envisaged for users, as well as alternative dispute resolution methods. Keywords: Payment Systems, Blockchain, Cryptocurrency, Electronic Commerce, Digital Payment Instruments, Compensation.