The Lebanese national currency continues to lose value in the wake of the country’s worsening currency crisis;; Unofficial reports point this out The Lebanese pound or lira has lost 50% of its purchasing power in less than two weeks.
On July 2, the local cryptocurrency defender Saifedean Ammous, Author of The Bitcoin Standard, entered Twitter to confirm this After losing half of its value in the last 10 days, the Lebanese lira is now worth a satoshi. This is a record low for the currency of around $ 0.000093.
June 21st, Ammous Indian that “Ten years ago, a Lebanese lira was worth 0.67 Bitcoin”.
“Imagine spending 45 minutes explaining Bitcoin to a Lebanese group and then having one of them ask, ‘But what guarantees Bitcon’s value without a central bank regulating it?'” Ammous Publicity a day before.
Lebanese citizens switch to cryptocurrencies
It is difficult to confirm the exact exchange rate since the Lebanese lira has been officially valued at $ 0,00066 since 1997. Chronic economic mismanagement has created a parallel market for the currency. Its value is reported to have dropped 86% in about a year.
The acceleration of the crisis has paralyzed everyday life in Lebanon, which is now preparing for a wave of emigration. At the same time, it is preparing to open its only international airport under the restrictions imposed by COVID-19.
“We are like prisoners who do nothing more than plan our escape.”32-year-old graphic designer Bernard Hage told Al Jazeera.
However, The economic turmoil has revived Lebanese youth’s interest in cryptocurrencies;; An informal Twitter poll in May found that 57.5% of locals would prefer to get their salary in Bitcoin (BTC).
In February, 29-year-old Mahmoud Dgheim said to Al Jazeera: “Right now, Lebanese are keen to avoid the strict restrictions on withdrawals and money transfers. You basically want financial freedom. “.
“If you want to avoid the banking system, Bitcoin is a solution.”
National currencies are worth a satoshi
Although many cryptocurrency space veterans considered a satoshi to be such a small monetary subdivision that it was almost worthless, Bitcoin’s current prices have made Satoshi equivalent to many national currencies.
The fiat currencies of Guinea, Sierra Leone, Laos and Uzbekistan are currently valued at around USD 0.0001, close to the price of a single satoshi.
A satoshi costs 30% more than the Indonesian rupiah, twice as much as the Vietnam dong and more than eight times as much as the Iranian rial.