Lebanon, grappling with an overwhelming annual inflation rate of 264%, is witnessing an impressive surge in cryptocurrency adoption. Recent reports show that dire economic circumstances also prompt Lebanese citizens to show heightened interest in AI-driven cryptocurrencies.
Why Lebanon Turns To Crypto
The inflation rate in the country, which stood at 190% in February, has led to a severe devaluation of the Lebanese Pound (LBP). Consequently, many Lebanese use cryptocurrencies for everyday transactions, including grocery purchases.
That comes in the wake of the Central Bank’s decision to devalue the currency by 90% in February, as part of its attempt to battle inflation.
Edward Snowden, the well-known whistleblower, has commented on this scenario. He argues that Bitcoin provides a solution to the inflation issue, a sentiment many in the cryptocurrency sector echo.
Financial Trouble Keeps Worsening
The alarming economic scenario in Lebanon is confined to rising inflation. It extends to an affected infrastructure, as reflected in the multiple reports of bank robberies and increasing Bitcoin mining activities.
Furthermore, civil unrest has been against financial institutions, particularly in Beirut. Serious fraud, embezzlement, and corruption allegations against the country’s central bank have been leveled.
Stablecoins and AI Crypto Coins Are In Demand
In the face of such tumultuous economic conditions, many resort to cryptocurrencies like Tether for everyday transactions. However, the equivalent value of $1 is now approximately 15 cents in the country. A stablecoin might help maintain that ratio, whereas the LBP would lose further ground.
Interestingly, Lebanese citizens’ interest in AI crypto has markedly increased amidst this drastic pivot towards cryptocurrencies. A recent CoinGecko report identifies Lebanon as the country exhibiting the highest interest in AI-driven cryptocurrencies, closely followed by Slovenia and the United Arab Emirates.
The trend outlined in the report suggests that economically challenged nations are showing an increased inclination toward AI and cryptocurrencies. However, how these emerging technologies will be assimilated into these struggling economies remains a topic of contemplation. Moreover, “AI crypto” is a vertical rife with scams and rug pulls.
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