The newest lows have been recorded in Lebanon’s official currency pound which has subsequently dropped about 1,500 against the American Dollar. Lebanon has been facing an economic crunch since the outbreak of the Covid-19 pandemic. Since then the country’s national currency has lost 90% value. The citizens are facing an acute shortage of essential supplies such as basic commodities and medical supplies. The government is concerned that people will be attracted to crypto which will worsen the economic crisis further.
It was on 13th June 2021, when a new has hit the Lebanese Pound, and this time the national currency lost 1,501 against American Dollar. As per the present exchange rate of USD in Lebanon, 1514.56 pounds make up US$ 1 only. The country’s economic situation has been going down drastically for some time. However, it is currently at the brink of collapse because of the Covid-19 outbreak that happened in 2019.
Over the past many months, the numbers of confirmed Covid-19 cases are increasing in Lebanon. For instance, since the end-March, there was an average of 2,500 confirmed cases on daily basis in the country. Lebanon is forcefully going through major crises which include economic, lack of commodities, and non-availability of appropriate medical supplies. Even the UN has asked the global world to lend their support to Lebanese on an immediate basis.
Lebanon’s economic crisis dated back to the time of the civil war after which the country received foreign aid and international loans. However, the funds were utilized towards erecting high-rise buildings, expensive boutiques, and shopping malls. The infrastructure required for medical requirements was completely ignored and only a few hospitals were established. A huge amount of this funding was even utilized by those who came into power after the civil war.
Currently, the crunch is so severe that even the electricity plants installed in Beirut are failed to supply electricity to the main grid. Resultantly there is an acute shortage of electricity supply causing people to come out in the streets and hold protests against the regime.
The majority of Lebanese are living under the poverty line and those who have the money, are settling in other countries. It is said that the present crisis has far-reaching effects and that the 1980’s crisis is nothing against this one.
There is also a huge discussion going on on Twitter regarding the financial and medical crisis in Lebanon. At Twitter, there is a group known as the Democratic Economy comprising of Twitter users. This group usually talks about economic conditions prevailing in various countries of the world. The group recently discussed Lebanon’s situation and suggested that the circumstances in Lebanon warrant a crypto introduction. It was suggested by Democratic Economy that the present crisis could pave the way for Lebanese for exploring alternatives. The best choice in this situation could be to capitalize on the crypto industry.