Next year, Lebanon intends to introduce its own digital currency, Bloomberg reports, citing the head of the country's Central Bank, Riyad Salame. Salame explained that this step is necessary to restore confidence in the banking system and switch to a cashless society model.
"Lebanon has no natural resources, and we have to hold gold, because this asset can be liquidated in foreign markets if we face an inevitable, fateful crisis," he added.
Salame reported on the preparation of the "virtual Lebanese pound" project in mid-2019. He noted that the digital currency will be 100% developed in Lebanon, strictly for domestic use. "Its purpose is to simplify payment methods, implement the technological transformation of financial institutions and reduce costs for consumers," he said.
At the same time, Salame noted that before issuing such a currency, the Central Bank must resolve a number of issues related to cybersecurity and countering money laundering.
In July, the Lebanese Lira equaled the exchange rate of 1 Satoshi, the smallest unit of bitcoin, and has since continued to depreciate against the dollar.