Lebanon plans to launch a digital currency in 2021

The Central Bank of Lebanon plans to launch a digital currency (CBDC) next year to bolster trust in the banking sector and move toward a cashless payments system. According to Bloomberg, this was announced by central bank governor Riad Salameh.

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He also urged the country’s banks to begin restructuring, including a 20% increase in capitalization. As a liquid reserve asset, the governor named gold.

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A year ago, amid mass protests against corruption in the country, local banks halted operations. The author of the economic bestseller “The Black Swan,” the American-born Lebanese Nassim Taleb, said at the time that this was the strongest argument in favour of cryptocurrencies.

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Later, he returned to the example of his homeland and noted that cryptocurrencies can no longer be ignored, especially in light of declining public trust in the banking system and governments.

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As a result of protests, Prime Minister Saad Hariri left his post. The country plunged into a deep economic and financial crisis, the national currency devalued by 60%, and public debt reached $90 billion. Bitcoin’s popularity among residents rose.

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Earlier, Riad Salameh had said in 2017 that the regulator planned to issue a national digital currency.

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For how and why central banks create CBDCs, read in article ForkLog.

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