BELLE, Bitcoin, Cryptocurrencies, Economic Update

War, Currency Collapse, Bank Restrictions and the Rise of Bitcoin in Lebanon

12:54 | 31 March 2026LIMS output
0
Bitcoin

Regional conflict and macro‑economic turbulence have rattled every major asset class, from gold to sovereign bonds. Meanwhile, the Lebanese banking system has been pushed into the margins since the 2019 financial crisis. The Lebanese pound’s plunge of 97 % against the dollar, coupled with tighter capital controls on “old” foreign‑currency deposits, has left ordinary citizens scrambling for alternatives outside the conventional banking network, resorting to physical gold, jewelleries, cash hoarding and Bitcoin.

LIMS argues that Bitcoin offers practical advantages in such a climate. Its decentralized blockchain means users can transfer value without traversing banking channels and triggering capital controls. In an economy where banks may stop transferring money abroad, Bitcoin becomes a tool for shielding against financial overreach and potential hyperinflation.
 
Bitcoin is also very useful for human‑rights activists operating in authoritarian countries. It allows them to bypass financial censorship, frozen accounts, blocked NGO funding, and to raise funds discreetly using wallet addresses rather than personal details. Payments for essential services such as VPNs, secure communication tools or even routine expenses can be made without state interference. In such an environment, where traditional safe‑haven assets such as gold can be confiscated or hampered by physical constraints, Bitcoin’s portability and instant accessibility make it especially valuable when movement or financial infrastructure is restricted.
 
LIMS cautions against using Bitcoin for quick gain. The asset’s high volatility remains a serious risk: price swings are extreme and can wipe out substantial portions of a portfolio in a single trade. Speculative activity often fuels pump‑and‑dump schemes and other forms of manipulation that distort true value and erode confidence. For now, Bitcoin is useful as decentralized, censorship‑resistant channel that can bypass banks and state controls, providing a degree of financial autonomy.

  • Why Do Cryptocurrencies Provide Financial Security in Times of War? March 13, 2026: Aljadeed, Video interview (AR)
  • When Economies Collapse in Times of Conflict: Does Bitcoin Become a Safe Haven for Savings? March 22, 2026: Aljadeed, Video interview (AR)