The country of Lebanon is having a weak economy which is in deep trouble. All of this leads the Lebanese people to embrace Bitcoin (BTC) and altcoins in an attempt to escape the banking system and protect their savings from dwindling as the fiat currency which is the Lebanese pound continues to struggle.
We can see that Lebanese banks have attempted to halt a potential run on the pound by imposing informal capital controls and forcing the customers to withdraw their savings in fiat at the official exchange rates. The regulation crypto news show that cryptocurrency is not something the government is looking up to – but the Lebanese people have already made the switch.
According to reports from Al Jazeera, the nation is experiencing a “Bitcoin boom.” Not only the Lebanese are actively following the Bitcoin price news – they are purchasing BTC more and more at a rate which is now just over LBP 1,500 to the United States dollar. This is still a far cry from the parallel exchange rates of about LBP 2,500 per dollar.
Additionally, their withdrawals are now limited to between $50 and just a few hundred dollars a month. The transfers abroad were recently capped at $50,000 per year, as the report shows.
Al Jazeera also quoted Mahmoud Dgheim, one of the Lebanese people who are trading Bitcoin. This specific person has been active in the market since 2015 and has an interesting view on the dominant coin. He said:
“Right now, Lebanese are interested in escaping tight restrictions on cash withdrawals and transfers. They basically want financial freedom. If you want to go around the banking system, Bitcoin is a solution.”
What is also important to note is that last year, the government unveiled new tax plans – a move that led to a series of angry protests. At the time, protesters called on Lebanon’s established political class to step aside, accusing the government of corruption and incompetence.
The authorities in the country just spoke to the International Monetary Fund (IMF), asking them to help find a solution to manage the country’s debt. Meanwhile, the Lebanese people have already considered options like Bitcoin which is why they are featured in the crypto news by Al Jazeera and many other news portals.
To anyone in Lebanon
Bitcoin fixes this
— Lira (@CryptoLira) January 6, 2020
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