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Lebanon: bitcoin against the economic crisis
Lebanon: bitcoin against the economic crisis
Bitcoin

Lebanon: bitcoin against the economic crisis

By Lorenzo Dalvit - 27 Feb 2020

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Bitcoin is the only way to escape the ongoing economic and political crisis in Lebanon which is destroying the value of the local currency.

Losses on capital held in banks amount to more than 40%, savers are forced to withdraw their money in Lebanese pound at inconvenient official exchange rates.

As Aljazeera recounts in a post dedicated to what happened, there are those in the country who are trying to move their money through alternative transactional models.

The one that is best known and established at the moment is certainly bitcoin. 

The biggest obstacle for bitcoin in Lebanon

To date, cryptocurrencies have not taken off in Lebanon due to the restrictions of the banking system, which prevents purchasing them using Lebanese credit cards

The country is also experiencing a crisis of public infrastructures, which are certainly not adequate and functional enough for a constant use of the internet, a fundamental tool to access the financial freedom that the population is looking for.

Slowness and latent connection have hindered the adoption of cryptocurrency.

Volatility remains one of the greatest fears for less risk-averse people, another factor that has prevented Bitcoin from breaking through. 

The recent surge in the use of bitcoin in Lebanon

However, now that devaluation and foreign exchange controls are making it impossible to protect the saver, volatility appears less frightening.

There are those who are buying real estate, cars, jewellery, non-perishable goods, while for some people virtual currencies are becoming a solution.

There are improvised cryptocurrency merchants who trade their Bitcoins by training their customers. 

Groups of hundreds of people are taking action to exchange these coins. Arab entrepreneurs are seeking shelter from devaluation and are getting money in and out using cryptocurrency transactions via blockchain.

The disintermediate and uncensored nature of this new financial structure is irresistible in countries where there are bad governance and corruption.

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Lorenzo Dalvit

Blockchain enthusiast tutor, expert in sales and marketing, social community manager, artistic director, musician, lover of disruptive paradigms and life. All my skill are about human interaction and connection

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