Lebanon’s inflation rate has surged to a critical level, with an annual increase of 264%. This represents a significant jump from the 190% recorded in February and has led to a surge in the adoption of cryptocurrencies, particularly AI crypto.
In response to the economic crisis, many citizens have turned to mining bitcoin or using cryptocurrency as an alternative means of storing wealth. Despite the legal prohibition on accepting crypto payments in Lebanon, numerous businesses continue to actively use them.
Current Situation in Lebanon
Presently, Lebanon is grappling with an acute inflation rate exceeding 160%. Regrettably, this has led to a significant reduction in the minimum wage from $450 to a startling $17 per month.
Furthermore, the native currency has plummeted by over 95% since August 2019. Lebanon was once recognized for its steady and investment-oriented banking system. However, the nation is now in disarray due to the impact of hyperinflation, which has resulted in banks imposing substantial cuts on dollar withdrawals.
On the 1st of February, the primary financial institution of the country devalued its currency by 90% in an attempt to tackle inflation.
The current state of Lebanon is critical, with its economy having a direct impact on its infrastructure. To cope with the situation, citizens are resorting to extreme measures, including bank robberies or mining Bitcoin, to make ends meet.
Lebanon into Crypto
The prevailing high inflation has forced individuals to turn to cryptocurrency as a means of sustaining their livelihoods, with some even using it for getting daily essentials such as groceries.
As per conversations on Reddit, a handful of users have shared their distressing situation, underscoring how 100,000 LBP is equivalent to a mere $1. Moreover, these users have emphasized that the adoption of cryptocurrency has witnessed a significant rise in countries grappling with severe inflation.
The level of acceptance of cryptocurrency in Lebanon is still comparably low in comparison to other countries undergoing similar economic issues. As per a recent study, only 0.91% of Sudan’s populace has embraced cryptocurrency, while Lebanon and Syria have slightly above 1%.
However, the prevailing situation in Lebanon is causing more people to turn to cryptocurrency as a way of securing their assets against economic instability and inflation.
