- Lebanon is currently facing an economic crisis.
- Natives do not want to put their money in the bank or at home due to the fear of theft.
The economic situation
In July 2021, a world bank issued a report stating that Lebanon will go through one of the most dreadful economic dilemmas since the mid–19th century except for its “bankrupt economic system that got some advantages eternally” improved.
Soon after that in August, the central bank of the country finished the fuel aids, publicizing that it will give credit lines for fuel that will come into the country and it will be totally based on market prices for the Lebanese pound. This caused the lifting of prices resulting in the economic crisis. Moreover, many depositors seized their bank accounts in September this year, which restricted them to use their savings.
After happenings like this, now many Lebanese locals acknowledge cryptocurrency as a lifeline for existence.
Similarly, the CEO of Microstrategy, Michael Saylor stated that Bitcoin is hope for Lebanon.
#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
The craze of cryptocurrency
As per the reports, many people are making profits by using cryptocurrencies such as Bitcoin and are trading the digital assets tether for U.S dollars by using Telegram groups. Abu Daher told in an interview that,
“We initiated by selling and purchasing USDT as the number of demand on USDT is comparatively very high.”
In spite of the fact that Lebanese law is restricting crypto payments, businesses are consistently promoting on Instagram and other social media handles that they can receive crypto. In the country, some hotels and tourism agencies have also initiated accepting Tether.
The residents of the nation have a fear of keeping their money in banks or putting cash at home as they are afraid of theft.
Lebanon holds the second position to Turkey in the Middle East and North African countries with regard to the volume of cryptocurrency received, as per the new data revealed by Chainalysis.
Cheap electricity
Crypto mining needs very costly tools along with some technical expertise and a lot of power. Miners are pressurized to shift to the cheapest electric source as they fight in a low-margin industry. Southern Lebanon is the country that provides power at low prices which allows the miners to make money out of it.
Source: https://www.thecoinrepublic.com/2022/11/06/natives-of-lebanon-are-heading-toward-this-cryptocurrency-between-an-economic-crisis/