Lebanon’s descent into a cash-based economy since the 2019 financial collapse has upended how households earn, save and plan. The paralysis of the banking sector, where deposits remain trapped and savings instruments have effectively disappeared, has eroded public trust and forced families to seek alternative protection outside the formal financial system.

Gold has become the primary refuge. As global prices surged in October, driven by central banks diversifying away from traditional reserve currencies, Lebanese households intensified their own rush toward gold as a store of value or a source of liquidity. The surge in domestic demand has strained local supply, raised costs and pushed many families to sell inherited jewellery or purchase gold on instalments to cope with everyday expenses.
 
Younger Lebanese increasingly favour Bitcoin seen as the “gold of the new generation”. LIMS noted several advantages to Bitcoin: global portability, insulation from political interference, and usability outside Lebanon’s fragmented banking system. Despite its volatility, Bitcoin has outperformed the Lebanese pound and all the savings products that banks promoted before the crisis. Those products ultimately inflicted heavy losses on depositors. The shift toward Bitcoin, LIMS argues, is the result of a deeper collapse of confidence in the monetary and financial framework.
 
This breakdown has reshaped the labour market as well. The collapse of formal employment and the sharp erosion of real wages have pushed thousands, particularly the young, into delivery work, gig labour and other part-time roles. The expansion of these low-skill jobs offers households quick liquidity but entrenches the cash economy. With most transactions conducted in cash, small businesses and informal workers remain entirely outside the digital payments system. Lacking financial integration, they are unable to scale operations, obtain credit or engage in any form of long-term economic planning.
 
The public sector has sought partial fixes. The Public Housing Bank’s decision to raise the loan ceiling to $100,000 aims to restore a path to home ownership. LIMS argues the previous cap was far too low, given that even rural housing prices exceed earlier limits. Still, the measure’s impact is constrained. Without functioning banks or stable incomes, many Lebanese, especially in suburban and rural areas, lack the earnings required to qualify for such financing.
 
Lebanon’s persistent reliance on cash has also drawn international scrutiny. After the country was placed on the FATF grey list, pressure intensified to curb illicit financial flows. Recent steps by the central bank and judiciary, including tighter monitoring of suspicious transfers, aim to address money laundering and terrorism financing, including networks linked to Hezbollah. LIMS stresses that alignment with global standards is crucial to restoring trust and attracting investment.
 
Ultimately, LIMS argues that Lebanon’s recovery depends on reviving and modernising its payment systems. Only a transition to a modern financial architecture can reduce the risks associated with the cash economy, strengthen governance, and encourage households to return to more balanced asset allocation rather than crisis-driven hoarding.

• Is “Delivery” Becoming The Profession Of The Future In Lebanon? October 10, 2025: Independet Arabia, Article (AR)
• Is Bitcoin The Gold Of The New Generation… And Is Silver’s Comeback Near? October 10, 2025: Annahar, Article (AR)
• The Soaring Gold Prices Tempt The Pockets Of The Lebanese… It’s The Safe Yellow! October 20, 2025: Manateq net, Article (AR)
• Gold, The Dollar, And Cryptocurrencies: The Struggle For Global Reserves And The Future Of Monetary Trust: October 22, 2025: VDL News, Audio interview (AR)
• Is Gold Becoming The Key To Escaping The Economic Crisis In Lebanon? October 28, 2025: CNBC, Video interview (AR)
• Housing Bank Loans Stimulate The Real Estate Market Despite Crises And Boost The Hopes Of Low-Income Earners. October 30, 2025: Al Hadeel Magazine, Article (AR)
• How Is Lebanon Trying To Save Its Banking Sector From The Shadow Of Sanctions? October 31, 2025: Alhurra, Article (AR)