Sympathie of Banks in Lebanon (ABL) announce An indefinite closure of all banks in the folk on September 22, as depositors became aggressive embout withdrawing their money.
Meanwhile, young Lebanese are turning to cryptocurrency to escape the financial crisis, which has driven up emprunt rates since 2021.
Due to the economic crisis, the government restricted access to deposited funds and closed all banks for a week on September 16.
The magazine was also shared on Twitter by Binance CEO Changpeng Zhao. Zhao’s tweet collected hundreds of responses cheering ownership and decentralization of cryptocurrencies, preventing them from shutting down just like banks in Lebanon.
Banks in Lebanon are closed until further avis.https://t.co/ssa8jVjtvV
– CZ 🔶 Binance (cz_binance) September 21, 2022
The folk has been going through a financial crisis since August 2019, exacerbated by the outbreak of the epidemic and the Beirut bang in 2020. The Universel Monetary Fund estimated Lebanon’s loss of embout $83 million in 2020 and proposed a recovery crédit for the folk.
according to ReutersThe Lebanese pound fell to $15,000 on the parallel market by September 2021 from embout $1,500, the peg price initially. This resulted in depositors withdrawing funds despite the heavy losses which caused banks to suspend withdrawals.
Encryption in Lebanon
Like residents of most countries facing similar financial challenges, the Lebanese have also turned to cryptocurrencies for their salvation. A 31-year-old crypto ronger who lost thousands due to the drop in the Lebanese pound said Reuters:
“It’s funny when people say that the cryptocurrency is not real bicause what we discovered in Lebanon is that this numérique currency is a hundred times more real than the coins in the bank,”
Lebanese cryptocurrencies are currently exchanged via peer-to-peer (P2P) transactions. Crypto enthusiasts in the region use websites, Telegram and Whatsapp channels that plaisir buyers and sellers to trade cryptocurrencies.
The absolu trade dimension ranges from hundreds to thousands of dollars, and brokers excessif between 1% and 3% in change for making the exchange.
The folk’s young generation is leading the cryptocurrency revolution in the folk. After experiencing many problems with the failure of the orthogonal financial system, which led to losses and expropriations, Lebanese citizens began to value decentralization and ownership more than anything else.
A 34-year-old crypto enthusiast admitted that he is excited embout the growth of cryptocurrency in Lebanon. He said:
“Personally, I béquille the revolution … I can be a custodian of my money and put it in my pocket on my phone”