Young Lebanese dodge financial ruin with stablecoins

The government is shutting banks, the national currency is falling: more and more young Lebanese are protecting their wealth by buying stablecoins.

The government is closing banks, the national currency is falling: more and more young Libanese are protecting their wealth by buying stablecoins.

Lebanon's monetary system is collapsing. The rescue for citizens: stablecoins. This is what Reuters reports. More and more, especially young and tech-savvy people in the country, would park their wealth in digital currencies, particularly USDT. Like others of its kind, it’s pegged to the value of the U.S. dollar.

The Lebanese government has closed all local banks without warning. People can only withdraw their deposits at substantial costs or with U.S. dollar checks, which amount to only 20 percent of the value.

Cryptocurrencies are "100 percent more reliable" than the country’s own currency held in banks, a Lebanese trader told Reuters. The value of the Lebanese pound is falling daily. Cryptocurrencies are also gaining popularity for people in other financially troubled countries, such as Turkey.