Lebanon Locals are turning to Bitcoin, Tether amidst an economic crisis
Due to Lebanon’s unsustainable financial system, some Lebanese have moved to cryptocurrencies. Locals are mining bitcoin, amassing wealth in cryptocurrencies, and completing some payments with Tether.
Dire economic situation in Lebanon
In 2019, Lebanon plunged into a financial crisis after years of costly war and poor spending decisions. CNBC Ground report You seem to have spurred MicroStrategy’s CEO, Michael Syalor, by outlining the issue. comment about the problem.
world bank report Released June 1, 2021.
As a result, in August 2021, the Central Bank of Lebanon announced that it would end fuel subsidies and provide credit lines for fuel imports based on market prices in Lebanese pounds. After that, fuel prices soared and the country fell into an economic crisis.
In addition, several depositors were locked out of their bank accounts overnight in September 2022, making their savings inaccessible. In response, some of them raided several branches, holding employees hostage and forcing them to withdraw their savings.
Digital assets are on track
Some Lebanese locals consider cryptocurrencies to be their “lifeline of survival”. CNBC.
“Bitcoin is Lebanon’s hope,” Microstrategy CEO Michael Saylor said in support of the recent trend.
#bitcoin I hope #Lebanonthe currency lost 96% of its value against the US dollar and banks went bankrupt.https://t.co/DkKrC4zgGY
— Michael Saylor ⚡️ (@saylor) November 5, 2022
See how people are incorporating digital assets into their lives.
Cryptomining Opportunity
Mining cryptocurrencies requires expensive equipment, some technical expertise, and large amounts of electricity. At scale, miners are forced to move to the cheapest power sources in the world to compete in a low-margin industry. Southern Lebanon offers cheap electricity that allows miners to earn more money.
i like the locals Abu Daher and Salah al-Zaatare, bought mining equipment from Chinese miners at a bargain price and built a farm. Additionally, we hosted rigs for people across Lebanon who lack technical expertise and lack access to electricity, a vital resource for a country plagued by blackouts.
However, local authorities closely inspected them. Last January, police raided and demolished a cryptocurrency mining farm in the hydroelectric town of Jezyn. In the eyes of the authorities, “energy-intensive cryptocurrency mining” was depleting the country’s resources and draining its electricity.
Payment by cryptocurrency
Some people are reportedly using digital assets such as Bitcoin to make money, exchanging the cryptocurrency Tether for US dollars through the Telegram group. Local Abu Daha told CNBC:
“We started by buying and selling USDT because the demand for USDT is so high.”
Even though Lebanese law prohibits cryptocurrency payments, companies are actively promoting their acceptance of cryptocurrencies on Instagram and other social media platforms.
Some hotels and travel agencies have also reportedly started accepting Tether.
Store funds as Bitcoin:
People across the country are afraid to keep money in banks or keep cash at home because of the risk of theft. CNBC.
Among Middle Eastern and North African countries, Lebanon ranks second only to Turkey in the amount of cryptocurrencies received, according to new blockchain data From Chainalysis.
