Bitcoin, means of survival for the Lebanese people


A growing local shadow economy – In a context of major economic and social crisis accompanied by a persistent hyperinflation since 2019, Lebanon is trying somehow to get its head above water. Decentralized digital currencies, most notably Bitcoin (BTC), as well as Tether’s stablecoin USDT, are a natural solution to the country’s monetary problems.

Lebanon, long considered the El Dorado, is no longer so

Beirut, once called “The Paris of the Middle East”, has known a particularly prosperous period since the Second World War. Despite a deadly civil war that would span from 1975 to 1990, the country enjoys an established global reputation for its tax advantages and the degree of anonymity it confers. The situation then gradually deteriorated in 2010 due to a growing budget deficit, in a post-war context involving high public expenditure. Lebanon finally defaulted in early 2020and a few months later the tragic explosion takes place at the port of Beirut.

The current situation is extremely precarious. The United Nations believes that 78% of the population lives below the poverty line.

Lebanon is undergoing a 3 digit hyperinflation and the Lebanese pound saw its value be divided by a little more than 26. Indeed, the currency, whose course has been backed by various fiat currencies since its creation, was exchanged at a fixed rate of 1500 Lebanese pounds for 1 US dollar for 25 years. Its value quickly eroded and the current exchange rate on the Lebanese black market is 40,000 pounds to 1 dollar.

A Lebanese protester during the bankruptcy in 2020
Source: francetvinfo.fr

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Bitcoin and digital currencies: inflation protection, source of income and savings tool

Lebanon, in the throes of major financial difficulties, clearly sees its population adopting cryptocurrencies out of “necessity”. They allow the Lebanese to store and transfer money independently of their unusable banking system.

Local initiatives have emerged, particularly in Bitcoin mining. The Litani River thus enabled the deployment of hydroelectric powered mining farms. Furthermore, mining is one of the few sectors where you can obtain a dollar income and not in local monkey money.

Many citizens now use their crypto wallets for everyday use. Telegram groups have emerged, bringing together Lebanese wishing to exchange USDT for dollars. The operation is simple: after agreement on the amount to be exchanged, the two parties meet physically in order to carry out the transaction.

Despite the official ban on cryptocurrencies as a means of payment in Lebanon, many companies publicly display accepting them. The devaluation of the currency is such that there is no other alternative.

Lebanon is another example of Bitcoin’s particular interest in countries whose currency is devaluing violently. Its use as a black market currency resistant to censorship will undoubtedly continue to develop in order to serve its role of counter-power against fiat currencies whose disastrous destiny seems all traced.

If at the end of this article, you are still not convinced of the vital importance of taking the train of Bitcoin and cryptocurrencies, let’s leave us good friends: nothing and no one will succeed! Failing that, don’t wait any longer to prepare for the future. Run to register on BinanceTHE absolute benchmark for crypto exchanges (commercial link).



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