By Hassan Mehmood (Saudi Arabia)
Under the current economic pressures, more than one country has succumbed to financial ruin. Following Sri Lanka, the next nation to plunge into an urgent economic crisis is Lebanon.
This Middle Eastern nation is home to around six million people of Arabic descent and shares its borders with nations like Israel and Syria.
Recently, the nation has been hit by a bout of hyperinflation with the sudden devaluation of its legal tender, the Lebanese dollar. To this end, the citizens of the nation are seeking refuge in cryptocurrencies.
As per the latest media reports, the people of Lebanon have started to turn towards cryptocurrencies and stablecoin Tether to gain access to basic life necessities such as groceries.
Lebanese Locals Turn to Cryptocurrencies to Deal with Financial Uncertainty
According to the media reports, one of the main reasons driving the Middle Eastern nation to the brink of hyperinflation is its crippling national debts.
The government of Lebanon has been trying to deal with the ever-increasing amount of maturing debts since 2019. Under these economic conditions, the underground exchanges operating in Lebanon have surpassed national exchange rates.
Also read:As per a new report on the matter by CNBC, the Lebanese people are using cryptocurrencies to deal with the storm of hyperinflation.
Many merchants have started to accept Tether or stablecoin USDT as a mode of payment. To this end, the USDT token has gained the position of an unofficial legal tender in the country.
The increase of cryptocurrency mining and usage as currency has also attracted the attention of crypto analysts and academics from all parts of the world.
To this end, cryptocurrency firm Chainalysis has recently reported that there is a 147% increase in cryptocurrency transactions happening in Lebanon alone. Another region where cryptocurrency adoption is on the uptake is Turkey hailing from the same region. The citizens of Lebanon are unable to rely on their savings in the banks.
However, they can lean on Bitcoin and a host of other cryptocurrencies as the prices have been rising in the international markets. The statement from a Lebanese citizen was noted by a CNBC reporter.
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