During the current financial crisis, a few of Lebanon’s tech-loving youth have supposedly turned their attention to digital currencies.
The administration shut all regional banks previously this week because of ongoing dangers to customers and staff. It is unclear when the banking firms will restart, which may be one of the reasons why locals began exploring other investment vehicles, such as digital products.
Lebanon’s financial position deteriorated after the administration closed all residential financial firms until further statement. As a result, people who want to cash out their money may do so at a significant loss or consider taking out US dollar-denominated payroll checks, which are marketed for a percentage of their value, currently around 20%.
In contrast, those who want to do anything with their earnings must act quickly since the Lebanese currency is losing value regularly. Based on a recent media report, some residents, primarily young people with sufficient knowledge of technological innovations, have begun dealing with digital currencies due to this challenge.
According to Mario Awad, some Lebanese HODLer, numerous politicians, security deputies, Television personalities, and famous people have recently purchased cryptocurrencies. Another user, Ahmad, claimed that virtual currencies are 100x more authentic than the money Lebanese retain in financial institutions.
Based on the report, the most popular digital asset among local shareholders is Tether, the nation’s biggest stablecoin. Its worth is tied to the US dollar, so it should remain untouched by the virtual currency market’s legendary volatility.
Popular despite not being regulated
The current Lebanese regime hasn’t yet supervised the virtual asset industry. Nevertheless, the absence of regulations doesn’t appear to be an issue for local investors, most of whom don’t respect the governing body’s behavior.
According to one of the market participants, many people see this as a good thing because they don’t reside in a nation where restrictions and legislators provide them with hope but rather the opposite. However, it is detrimental to the broader adoption of virtual currency.
It is important to note that virtual currency mining is thriving in Lebanon, owing to low power price levels. Speaking on the subject, a native miner identified as Jad stated that even if you make $10 per day with a standard computer, that’s now numerous times the lowest wage. He’ll never put another penny in a Lebanese financial institution after what they’ve gone through.
Lebanon’s current inflation rate is around 160%, and the recently closed financial institutions have only exacerbated the problem. Residents’ growing interest in digital currencies is nothing novel due to the current situation. Inhabitants of other nations, such as Turkey and Argentina, have joined the bandwagon because of fears about rising prices or political unrest.
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