Lebanon Plans to Launch Its Own Cryptocurrency
November 11, 2020 5:25 pm
Central Bank of Lebanon, has announced that it is planning to launch a new cryptocurrency in 2021 as part of a deep effort to resist a parallel economic and financial crisis that has sunk the country.
Riad Salameh, governor of the central bank said that “We must prepare a Lebanese digital currency project” as a step to develop confidence in the banking system.
“As for the monetary supply in the Lebanese market, it is estimated that there are $10 billion stored inside homes.”
Lebanon relies heavily on remittances from its wide global diaspora. Last year, according to the World Bank, personal remittances represented closely 14% of Lebanese gross domestic product. The statistics were as high as 26.4% in 2004.
The governor also included that Lebanon will maintain its gold reserves as a boundary against a wider market crisis. If such a crisis occurs, the central bank can convert its bullion into foreign markets for immediate relief.
The country’s central bank, Banque Du Liban, has been trying to launch the idea of a state-run cryptocurrency since 2018. However, efforts seem to have accelerated earlier this year after violent protests and silent bank runs brought Lebanon’s financial system to a halt.