- Simon Dixon says that the Bitcoin may come to the great rescue in rebuilding the economy of Lebanon.
- Ever since the virus outbreak started in 2019, Lebanese pound has lost seventy percent of its total worth.
- The citizens of Lebanon are finding an alternative to banking solutions.
Simon Dixon, the CEO as well as the co-founder of bnktothefuture.com, which is an online investment platform, says that the Bitcoin may come to the great rescue in rebuilding the economy of Lebanon, which is crippling day by day.
Lebanese financial crisis is not a new thing; it has prevailed for many years. Many Lebanese people have been going out on the streets for the past two days now, as the economic condition worsens. The global pandemic of Covid-19 has only added to the ill-luck of the country.
COVID-19 Worsen Lebanon Economy
Ever since the virus outbreak started in 2019, Lebanese pound has lost seventy percent of its total worth! The situation worsened as people threw stones and fireworks at the policeman in an anti-government protest, and they backfired with tear gas.
In such situations, the citizens of Lebanon are finding an alternative to banking solutions. Consequently, more and more Lebanese people are willing to know about Bitcoin and cryptocurrencies, which may serve as a great alternative to the banks that have fallen due to the crisis. Relatively cheaper rates and easy accessibility are the two main reasons why people may consider them as an alternative.
The Lebanese government is negotiating with the International Monetary Fund to provide them financial assistance of some billion USD until they make it out of the economic recession. Luckily on Friday, the Lebanese pound stopped its fall. The government promised the central bank that it would implement quantitative easing to cope up with the pound’s downfall.
In the current scenario, almost one-third of Lebanon’s population do not have their job. Furthermore, the government has put restrictions on the withdrawal of the dollars, disabling the people to use their savings.
Lebanon Currency Crisis, Protests and More
They have lost 70% against $USD but how much against $BTC ? No joke the new government should hold some #Bitcoin reserves to protect themselves as they rebuild. Protests rock Lebanon as currency collapses https://t.co/SVBvJu2dzP
— Simon Dixon (@SimonDixonTwitt) June 13, 2020
In a recent tweet, Simon Dixon has suggested that the country better have Bitcoin reserves, which help in protecting and recovering the economic recession in the long run. Most of the major crypto exchanges work in Lebanon, and users are not allowed to buy Bitcoins with their credit cards. Further, there are heavy restrictions on the withdrawals. This results in the difficulty of scaling.
Joy Garfield is a former US war veteran and a trader of cryptocurrency for the past seven years. He and a Lebanese professor are working on new ways to introduce the cryptocurrency to the people of Lebanon. Thus, If everything goes smoothly, the project may greatly help the fractured banking systems. And restore the fallen economy of the country.