Lebanon Deprives the People of the Fruits of Their Labor – This Is Why Bitcoin Is a Necessity

Westerners who criticize Bitcoin should get out of their comfort zone and look at what is happening elsewhere in the world.

Written by Sylvain Saurel - In Bitcoin We Trust

Bitcoin has been making headlines for several weeks for its price or the thorny issue of its environmental impact. This is why Elon Musk has decided to end support for Bitcoin payments for Tesla's electric cars on May 13, 2021.

Behind this announcement, some have taken the opportunity to accentuate fear in the market by spreading FUD (Fear, Uncertainty, and Doubt) messages.

Everything that has come out of China since then can be classified in this area. China's position hasn't fundamentally changed in several years, but a simple call to order has plunged the Bitcoin market a little further into chaos.

Bitcoin is all about power

While everyone was focused on this ambient noise, the real signal was left behind. Once again, if I may say so.

Indeed, Bitcoin is all about power. People living in Western countries who question the usefulness of Bitcoin find it hard to go beyond their own comfort zone to areas of the world where Bitcoin is already a necessity.

I'm talking about countries where hyperinflation is rampant and corrupt leaders are making decisions against the interests of the people.

For these millions of people, Bitcoin is already a plan A.

The political power wants to deprive the Lebanese people of the fruits of their labor

This time, a concrete example of the absolute necessity of Bitcoin has come to light in Lebanon. The Lebanese State Council has just notified the Central Bank of Lebanon that it must suspend the execution of the central bank's main circular No. 151.

This circular allowed Lebanese depositors to withdraw in Lebanese pounds and at a rate higher than the official parity, part of their "Lebanese dollars" blocked by the illegal restrictions adopted by banks.

Even though the Central Bank of Lebanon announced that it was preparing an appeal to the State Council to reverse its decision, it had no choice but to implement this measure.

This obviously caused a wind of revolt in Lebanon. Residents block the roads and demonstrate in front of banks. Pictures were taken on Thursday, June 3rd, 2021 that showed long queues of people in front of banks:

Lebanese citizens were hoping to get their money out before the decision took effect later in the day.

Lebanese citizens are condemned to extreme poverty by their leaders

Calls for protests outside Lebanese banks were growing across the country as Lebanon continues to sink deeper into the worst economic crisis in its history. The unemployment rate is now 40%, while poverty affects more than 55% of the population.

Born in the first months of the economic crisis that Lebanon has been going through for two years and that caused the collapse of the Lebanese pound, the Lebanese dollars are defined as opposed to the "fresh dollars" whose availability is guaranteed by another text of the Central Bank of Lebanon: the circular n°150 adopted on April 9, 2020.

The circular n°151 which has just been suspended thus allowing customers who possessed Lebanese dollars, nicknamed "lollars" on social networks, to withdraw them at a rate of 3,900 pounds, more than the official parity of 1,507.5 pounds, but less than the parallel market rate.

The latter is the real winner of the health of the pound, which passed on June 3, 2021, with the mark of 13,000 pounds to the dollar.

The internal crisis in Lebanon is the result of many years of mismanagement by the government

For those who are not familiar with the Lebanese situation, it all starts with the government's decision to link its local currency to the U.S. dollar, despite the country's more than questionable economic fundamentals. Lebanon has been borrowing heavily in U.S. dollars.

The problem is that the U.S. dollar is procyclical. When the world economy is doing well, everything is fine. As soon as the economic crisis hits the world, the situation becomes untenable for countries like Lebanon. Another major problem is that most of the money borrowed by the Lebanese government over the past years has been misused.

The country has increased its debt without any real benefit to the people.

The collapse of the world economy with the COVID-19 crisis since March 2020 has accelerated the internal crisis in Lebanon as everyone now wants to fall back on the U.S. dollar, which is obviously safer than the local currency which is constantly devalued.

The link between the U.S. dollar and the Lebanese pound has become untenable. The economy has collapsed, so the government has decided to ration the people in U.S. dollars.

The Lebanese people need more than ever a currency that protects its users, that is Bitcoin

The Lebanese government wants to make the people pay for their short-term management of things. For this, it decides to deprive the people of the fruits of their labor. The people have earned the money they want to withdraw, but the government decides to prevent it. This situation can be observed in Argentina as well.

With the current system where central bankers reign supreme, this is quite possible.

This is why a system like Bitcoin is becoming a necessity. Bitcoin is the people's currency backed by the people. Once you have the private keys associated with your Bitcoin, no one can stop you from using it as you wish, or even take it away from you.

Bitcoin is an encrypted P2P currency that gives people power over the fruits of their labor.

Final Thoughts

At a time when many in the West are spending an inordinate amount of time criticizing Bitcoin for its lack of usefulness or its disastrous environmental impact, it's time for them to look beyond their own comfort zone. Bitcoin is already saving lives all over the world, and we need to protect this essential revolution for the future of the world.

Lebanon is just one example of why becoming a Bitcoin HODLer to protect this revolution is something we all need to do. It is up to us to try to build together a fairer world for the many in the future.


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