Lebanese Banks Closure May Open Up Opportunities For Cryptocurrencies

Lebanese citizens have been left without financial services as a result of local riots, which led to shutting down all banks` operations. According to statistics, more than two-thirds of all Lebanese citizens rely on Banks. The banks closure means that over 60% of the population is left without access to their accounts and banking services.

The banks closure remains active as a preventive measure aiming at preserving the financial stability of the nation. Salim Sfeir, Head of Bank of Beirut, stated that banks will resume operations when they “feel the situation normalizes and gets back to its previous state”. Today is the seventh business day in a row, leaving Lebanon without banking services.

The alternative to banking services, considering the current issues that Lebanese citizens are experiencing, may be the cryptocurrencies. The trading and statistics expert Nassim Thalleb refers to this opportunity as “the most potent use case for cryptocurrencies to date”. Cryptocurrencies are able to mitigate the harms that are caused to bankers by the traditional banking services.

Thaleb also refers to what India and Hong Kong did, respectively in 2016 and 2019, demonstrating how national currencies can be transformed into “worthless paypers”.

Lebanese citizens are fighting against bank closures and the deteriorating economic situation in the country by organized riot events. Lebanon’s president Michel Aoun made a public speech in a national television announcement, stating that the main culprit for the crisis is corruption.

“I am ready to meet protester representatives and hear them out, as there is a urgent need to restructure the government”, Aoun stated.