Lebanon’s financial crisis has banks looking for alternative monetary policy and citizens scrambling for alternative banking services, Coindesk reported. The economic crisis has been raging for years, but political turmoil and the pandemic-induced global market downturn have raised fears of government defaults and the devaluation of the Lebanese pound. As a result, more Lebanese people are seeking information about bitcoin (BTC), which is relatively cheap and accessible compared to the fractured banking system.
The exchange rate for Lebanese pounds to dollars has skyrocketed from 1,500 pounds for every dollar to 4,000 pounds for every dollar, said Patrick Mardini, CEO of the Lebanese Institute for Market Studies and associate professor of finance at the University of Balamand in Lebanon. That exchange rate also varies depending on the type of dollar.