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Regarding innovation, I wonder how much role social friction plays. I'm not turkish, but my understanding is that there is a lot of interpersonal negotiations in turkish dealings, who knows who, who owns a favour to whom. Which is related to corruption. You don't have that as much in the West, when you deal with someone it doesn't matter as much who you are and who you know.
Now imagine if they turned this focus to something else.
What if the person you sell cocaine to for dollars to spend on Amazon reports you?
What if you get an IRS audit, how do you justify the funds used to buy the house?
Yes, you'll be able to use crypto on black markets, but that is hardly covering all your needs.
Just try bartering for something with cocaine to see what I mean.
You might be shocked by how they look like.
I think few in the West realize how fast China is moving.