Crypto seems to have found the perfect market in Lebanon

During the current financial crisis, a few of Lebanon’s tech-savvy youths have turned their attention to digital currency.

The administration closed all regional banks this week due to the risk to customers and employees. It is unclear when the banking institutions will reopen, which may be one of the reasons why locals have started exploring other investment vehicles, such as digital products.

Lebanon’s financial position has deteriorated until further notice after the administration shut down all housing finance firms. As a result, people who want to withdraw their money may incur significant losses or consider taking US dollar-denominated paychecks, which are priced at a percentage of the market, which is currently around 20%.

On the other hand, as the Lebanese currency is constantly depreciating, those who want to do anything with their earnings must act quickly. Based on a recent media report, some residents, mainly young people who have enough knowledge about technological innovations, have started dealing with digital currencies because of this challenge.

Some Lebanese HODLers like Mario Awad, several politicians, security representatives, TV personalities and celebrities have recently purchased cryptocurrencies. Another user, Ahmed, said virtual currencies are 100x more authentic than the money Lebanese hold in financial institutions.

Based on the report, the most popular digital asset among local investors is Tether, the country’s largest stablecoin. The price is tied to the US dollar, so the legendary volatility of the virtual currency market should remain untouched.

Not controlled but popular

The current Lebanese regime has yet to regulate the virtual property industry. However, the lack of regulation does not seem to be an issue for local investors, most of whom do not respect the nature of the governing body.

According to one of the market participants, many people see this as a good thing because they do not live in a country where restrictions and laws are promising, rather the opposite. However, virtual currency suffers from widespread acceptance.

It is important to note that virtual currency mining is booming in Lebanon due to low energy prices. According to a miner known as Jade on the topic, even if you earn $10 a day on a regular computer, this is many times the minimum wage. After passing through, he will not deposit another coin in a Lebanese financial institution.

Lebanon’s current inflation rate is nearly 160%, and recently closed financial institutions have exacerbated the problem. Residents’ interest in digital currencies is nothing new due to the current situation. Residents of other countries, such as Turkey and Argentina, have joined the group due to fears of inflation or political instability.

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