American traders can talk cryptocurrencies with their families at the Thanksgiving table. Meanwhile, the Lebanese have a real problem ahead of them – the limits imposed on their accounts. In the face of strict banking restrictions that have sparked numerous protests and public speeches in Libya, Bitcoin and other cryptocurrencies are helping citizens survive.
Lebanese banks have set a $1,000 limit on weekly withdrawals from non-state bank accounts, in a bid to combat the economic crisis, they say. A trader based in Beirut said his bank has set the limit at less than $150. Many citizens are having a hard time accessing their bank accounts where they keep their funds.
Such restrictions are a huge hindrance for traders and entrepreneurs. Many Lebanese companies manage their imports and exports in dollars. Payments are easier because they bypass inflation in this way. Entrepreneurs say in interviews that they are slowly running out of imported goods. Local stores are starting to run out of stock. The shelves are emptying because prices are constantly rising, and obtaining goods is almost impossible. Inflation does not give respite. In such a situation, resorting to other means of payment (including cryptocurrencies) is the last resort.
Cryptocurrencies allow you to transfer funds, independently of banks and institutions. This is the best way to help the Lebanese financially. Bitcoin is currently saving the liquidity of transactions. It works perfectly in this role. BTC has become popular in Libya, because many families transfer their savings with it. Libyan culture focuses on the cult of family. The Lebanese are a very social nation and helping loved ones is incredibly important to them. Most residents know, however, that Bitcoin alone may not be enough to solve their problems.
Protests in Libya
The Lebanese are trying to fight for theirs. Numerous demonstrations and protests are being organized. Hezbollah leader Hassan Nasrallah claims that such demonstrations fuel hostility and violence in society.
Bitcoin is often associated with anti-government protests. This image of cryptocurrencies is very unfair and we should show that it is an apolitical asset. I think if everyone took a moment to educate their surroundings about cryptocurrencies, the world would be a better place. – says Hassan Nasrallah.
How will the situation in Libya develop? We will find out soon.
