Currently, every country of this world is experiencing a severe economic crisis due to the coronavirus pandemic. This has also put nearly 300 million jobs from different sectors and industries at risk as businesses are laying off a large number of employees and are not ready to recruit new employees. This causes potential damages to the country’s economy as well as the global economy. The massive loss of jobs will increase the unemployment rate in an economy and cause inequality among the people. In order to save some money, people will start reducing their consumption of comfort and luxury goods. Moreover, the different countries’ governments lack effective resources to fight the pandemic to bring their economy back on the right track.
Lebanon Currency Crisis
Lebanon, the country that is popular in the world for its dynamic culture, food, and music is now in the midst of a severe economic crisis. The country is going through several inflation strokes, along with the food crisis. Since the start of the civil war, the Lebanon currency’s value has depreciated dramatically against the American dollars and joined the other failed fiat currencies like Zimbabwean Dollar, Argentinian Peso, Venezuelan Bolivar, etc. Due to this, all the business in the country has been closed, the prices of the essential commodities like bread, wheat, etc. have skyrocketed, and the threat of hunger hunts the people.
Most of the country’s citizens have been selling their wedding rings and household items to provide food for their families. Lebanon is experiencing this type of crisis because its economy depends on the American dollars to maintain Lebanon’s Lira stability. In the middle of the year 2019, when the economic crisis hit the market, the 1 American dollar was equal to1517, Lebanon Lira.
What did the Government do to overcome this crisis?
In order to solve the crisis and increase the money flow in the country, banks started to offer a high rate of interest (14%) on deposits, so the people will start depositing their money in the bank. But the plan failed as more deposits mean banks need to pay higher interest rates, and there was a shortage of currency. Similarly, all the money transfer offices were asked to cash out Lira rather than Dollars, and this also further worsened the crisis. In the next few months, the demand for dollars continued to rise, and the black markets for dollars began to start forming across the country. People purchased dollars at a higher rate, and thus there was an acute shortage of Lebanon Lira.
How Can Cryptocurrency Help Lebanon to Survive a currency crisis?
In this period of crisis, the cryptocurrency can promote social and economic growth throughout the world by offering easier and quick access to financial and capital services. The cryptocurrency can also subside the currency crisis in Lebanon and help the Government to revive its economy. These cryptocurrencies have high volatility and ease of use, which makes them ideal for a more significant population. The people of Lebanon can use the digital currency to purchase anything from the market instead of cash. It is decentralized and enables an individual to trade easily across the borders.
Moreover, the usage of advanced technology will create a robust financial revolution in the country that will make every citizen more financially connected, enabled, and empowered. While making any transaction using cryptocurrency, one does not have to pay substantial transaction costs. Thus, these features make cryptocurrency to be more popular in a country like Lebanon, where people have to pay a high rate of interest to moneylenders. Furthermore, all the transactions made through the cryptocurrency are digitized and automated and can be tracked in a distributed ledger.
As you can see, the cryptocurrency has the potential to change the face of online money in the next 5 to 10 years; it is time to invest in it now through the-crypt-ex.com to reap the benefits later. Visit the website to learn more!