Lebanese survive thanks to crypto – Apparata

In a country where banks hardly function anymore, crypto proves its worth to the Lebanese.

Crypto: hated by those in power, loved by rebels

Western governments do not like crypto, because there is no control over it. On the other hand, that is also a reason for governments that are at odds with the West, such as those of Russia, Iran and North Korea, to find cryptos very attractive. This also applies to the inhabitants of countries such as Lebanon who are about to fall.

Lebanese survive bank collapse with crypto

A drama that you don’t hear much about in Europe, but which does cause a lot of misery, is the situation in Lebanon. As a result of the civil war in Syria, money flows to Lebanon have dried up. As a result, the local currency is worth almost nothing.

The black market rate of the local currency, the Lebanese pound, is now only 5% of what it was at 40,000 LBP per dollar. Compared to this, bitcoin (now down two-thirds from its peak) is a hugely stable currency.

Lebanese who thought they were smart and opened a dollar account in the bank, came to the unpleasant discovery that they can no longer access their dollars. These banks only pay out € 0.15 per dollar.

Shopping with bitcoin

That means a drama for the population, because imports can no longer be afforded. Naturally, the Lebanese are furious, but they are not giving up. Lebanese are now shopping en masse in bitcoins because the banking system has been completely disrupted.

Here Bitcoin (with stablecoins like Tether) proves its enormous value as a currency that, like gold, survives mismanagement by governments and corrupt bankers. Simply because they have almost no control over it.

You cannot seize a Bitcoin account. You also cannot apply a haircut. If the government and the banks are not your friend, as in Lebanon, it can mean the difference between life and death.