Digital currencies enter the competition circle in Lebanon … Do you come close to being an alternative to the traditional banking system?

On April 27, 2025Lebanon continues to walk in an exceptional economic path, in which the financial rules of the game change dramatically. In light of the collapse of the traditional banking system, and in the absence of confidence in local banks, it started Digital currencies In Lebanon It imposes itself as a realistic and actual option to transfer money, store value, make daily transactions, and even as a tool for investment and savings.

Use of digital currencies after 2019

Since the outbreak of the Lebanese financial crisis in 2019, and the subsequent restrictions on bank transfers and the freezing of deposits, citizens began looking for safer and flexible alternatives. One of these alternatives is represented in Transformation towards stable digital currencies such as USDT (Tether) andBitcoinIn order to keep their savings from escalating inflation and the historical collapse of the Lebanese pounds.

In a special hadith, he explained Economist Professor Pierre El Khoury The transition to digital currencies is not just an individual orientation but rather a semi -collective phenomenon, which includes Lebanese inside the country and expatriates outside, who use these digital assets to transfer and receive money without passing through traditional banks.

Legal and security risks for the use of cryptocurrencies in Lebanon

Despite the clear benefits, the digital currency market in Lebanon suffers from The absence of legal organizationWhich makes users vulnerable to multiple risks. There are no laws that protect investors in the event of fraud, losses in digital portfolios, or exposure of accounts to electronic hacking.

In this context, Al -Khoury notes that the lack of a clear legislative framework makes investors in a gray area legally, which puts them in a weak position in conflicts or crises, and increases the difficulty of restoring rights or addressing illegal practices.

The obstacles to the adoption of encrypted currencies in Lebanon

With all of the above, it remains Wide adoption of digital currencies In Lebanon, he faces several obstacles, including:

• Lack of financial and digital culture Most users have.
• Great fluctuation in encrypted currency ratesWhich makes it not suitable for daily use on a large scale.
• The absence of digital infrastructure You need to support the trading of cryptocurrencies safely and effectively.
• Fear of exploitation in suspicious activitiesLike money laundering or tax evasion.

All of these factors limit the possibility that cryptocurrency will become a complete alternative to the banking system at the present time, but they do not deny that they represent a growing supplementary solution.

Emerging projects pushing for digital transformation

Despite the challenges, some Lebanese initiatives built on Blocchain Technology (Blockchain)Especially in areas such as:

• Documentation of documents and contracts
• Facilitate logistics services
• Developing digital solutions for the real estate market

These initiatives are still in their early stages, but they represent a potential nucleus An alternative digital economy It may flourish in the future if appropriate legal and technological support is available.

Bitcoin mining in Lebanon: an alternative or risk opportunity?

One of the striking phenomena is also Bitcoin mining spread In Lebanon, especially in light of the availability Relatively cheap energy from private generators. Al -Khoury says: “Every person does not use the full energy of his own birth, has an opportunity to exploit the surplus in the operation of bitcoin mining devices, which generates alternative income.”

These operations have evolved from small individual initiatives in homes to Medium mining farms Equipped with professional cooling and control systems. This reality added a new practical dimension to the local digital economy in light of the violent economic crises that the country is going through.

Digital currencies as a tool to counter the collapse of the lira

Amid the continuous collapse in the value Lebanese liraThey became Current currencies are a safe haven For some, despite its fluctuations. And its use increased in:

• Cutting from inflation
• Transfer salaries from abroad
• Paying large payments internally and externally

It seems that there is an increasing segment of people that began to be considered stable currencies like USDT in its daily transactions, in the absence of confidence in the official financial system.

Are digital currencies an actual alternative to the banking system?

Experts collect that digital currencies have the ingredients to be A competitor to the banking systemEspecially with its ability to:

• Transfer money quickly and safely
• Providing digital lending services without intermediaries
• Store the value away from inflation

But on the other hand, these currencies are still suffering from Lack of confidence, poor legislative structure, and security risks It makes it a supplementary option, not a real alternative yet.

Tax and organizational ambiguity hinders growth

On the tax level, the Lebanese state still lacks A clear policy towards encrypted currency gains. So far, no law regulating or imposing taxes on profits resulting from the sale or mining of bitcoin or others has been issued.

However, some indications indicate a government trend towards organizing this sector in the future, whether through tax laws or supervisory tools belonging to the Bank of Lebanon, according to Al -Khoury.

What about the digital lira?

In 2020, he crossed Bank of Lebanon About his desire to issue Official digital liraBut no executive steps have been taken today. This is attributed to:

• Digital infrastructure weakness
• The political and financial challenges faced by the central bank
• The absence of a clear vision on how to combine the digital currency into the current financial system

However, experts believe that the official digital currency can be used in the future to distribute subsidies or monitor cash flows more efficiently and transparently.

Digital currencies in Lebanon: Between opportunities and risks

In conclusion, it is a rise Digital currencies in Lebanon An inevitable result of the collapse of the banking system, and the absence of confidence in financial institutions. While these digital assets carry great promises, they are risky in the absence of the organization.

If the Lebanese government wants to benefit from this revolutionary technology, it must move quickly to establish a clear legislative structure, support innovation, and enhance digital awareness among citizens.

Recommendations to improve the financial digital scene in Lebanon:

1. Issuing clear legislation to regulate digital currencies
2. Establishing a digital control body affiliated with the Bank of Lebanon
3. Launching awareness programs on digital security and responsible investment
4. Providing digital infrastructure to support governor and encrypted applications
5. Determine a transparent tax position on digital currency profits

Is Lebanon ready to formally adopt digital currencies?

Time is enough to answer, but it is certain that the digital financial future has already started.

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