Introduction
In an intriguing article publishedby Forbes magazine, a report waspresented suggesting that Lebanon's economic recovery could be achieved by the digital currency “Bitcoin”.
The magazine recalled a report issued by the World Bank about the Lebanese crisis as being one of the most significant global crises since the middle of the 19th century. The country’s situation deteriorated as a result of three decades of bad and corrupted financial and monetary policies that led to a decline in the value of the local currency by more than 95%.
Now the prevailing situation in Lebanon is that the currency is in a state of collapse, and corruption is making everything even worse. The banking sector is struggling and causing the citizens to suffer a tremendous erosion in their savings and purchasing power.As of October 2019, even deposits in foreign currencies were not saved, especially the US dollar and these deposits held a new name, “the Lollar”.In practical terms, having $100 in the bank is equivalent to being able to use it with only $10, which highlights the decline.
Here, Forbes stated that, in contrast to what was mentioned previously, the digital currency “Bitcoin” offers a clear alternative with its basic principles of self-guarding and enabling individuals to access their funds without the need for external permission.As well as the transparency of Bitcoin does offer protection against arbitrary policies that may lead to the devaluation of the currency. Moreover, the stable and reliable consensus mechanism adopted by that currency, the Blockchain, works to ensure a decentralized and secure financial system, eliminating vulnerabilities resulting from a single point of failure and completely reducing the risk of any potential fraud.
Amid the crisis that Lebanon is going through on the financial level, the Forbes report says that Bitcoin offers an interesting use case.
What is noteworthy in the magazine’s report is that it highlighted one of the citizens who returned to Lebanon after the financial collapse and established his own company. He said in a statement that “Bitcoin is the solution. The moment you begin to understand the Bitcoin currency, you will realize the fragility and the deep economic scars in fiat money."
In addition, Bitcoin also addresses the challenge of storing cash at home and is considered a hedge against rampant inflation, which has plagued Lebanon in recent years by staggering estimates.
Conclusion
Lebanon's case is ripe for Bitcoin adoption, driven by expatriates and a general lack of trust in central authorities; in addition to the availability of the country's rich and largely untapped energy resources. All of the above constitute a fertile ground for Bitcoin mining, so this industry can bring much-needed stability and wealth to Lebanon.
As Lebanon has arrived at a very fitting stage for adopting digital currencies and blockchain technology, I have been trying to introduce Hive to the Lebanese community and explain the great benefits that this vast world can provide.In Lebanon’s struggle, Cryptocurrency is more than just a financial asset; it is a symbol of change, a testament to the power of innovation, and perhaps the country’s first step toward a future where the currency is as resilient as the Lebanese.
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