Amid an unprecedented economic crisis, residents in Lebanon are turning to Bitcoin and Tether to store their wealth and make payments as people lose faith in local banks.
A recent report by CNBC has brought to light the dire state of the economy in Lebanon which has left many of its residents with no other option but to turn to crypto to help their financial situations. The country fell into a financial crisis in 2019 following years of expensive wars and poor spending decisions. In the hopes of retaining some of their wealth in a country where the local currency has lost 95% of its value since August 2019 and the minimum wage has effectively been reduced from $450 to $17, pensions are worthless, a triple-digit inflation rate threatens their existence, many have turned to cryptocurrencies such as Bitcoin and Tether. CNBC interviewed many residents of Lebanon that regard Bitcoin as a haven and their last hope of survival. Locals have started mining digital tokens as their primary source of income and have even started organizing gatherings through the social media channel Telegram to exchange Tether (USDT) for dollars so that they can buy food.
Michael Saylor, chairman of MicroStrategy, even went as far as to suggest that Bitcoin is the sole hope for the crisis-ridden Middle Eastern country saying:
#Bitcoin is hope for #Lebanon, where the currency has lost 96% of its value vs USD and the banks have failed.https://t.co/DkKrC4zgGY
— Michael Saylor⚡️ (@saylor) November 5, 2022
A respondent that CNBC interviewed said that 90% of his income is derived from freelance work and is paid in cryptocurrency. He added:
Bitcoin has given us hope. I was born in my village, I’ve lived here my whole life, and bitcoin has helped me to stay here.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2022/11/lebanese-locals-turn-to-bitcoin-amid-crisis-ridden-economy