Another Case for Bitcoin as Lebanon Reportedly Targets Depositors’ Fiat
Lebanon allegedly plans to forcibly convert foreign currency holdings to its floundering pound (LBP), once again building a case for Bitcoin (BTC).
Earlier this week, Reuters reported that it had seen a government “blueprint” plan designed to fight the ongoing financial crisis. The plan, the news agency wrote, “projects a 93% devaluation of the Lebanese pound and converts the bulk of hard currency deposits in the banking system to local currency.”
Investors would potentially face enormous losses if the plan were put into action. Reuters continued by stating that “of USD 104bn of hard currency deposits,” the plan’s authors “foresee returning just USD 25bn to savers in USD, with most of what’s left converted to LBP at several exchange rates, including one that would wipe 75% off some deposits.”
And while the government allegedly plans to repay “all depositors,” it will do so over “a 15-year time frame.”
Alex Gladstein, Chief Strategy Officer at the Human Rights Foundation, bemoaned the fact that the world was “watching” as “as thieving bureaucrats loot the currency of a once-proud nation.”
From the Bitcoin community, the message was clear, and went something like this: “Bitcoin fixes this.”
The Castle Island Ventures Partner Nic Carter opined that the Lebanon report was” a tale as old as time,” and could see depositors “given a massive haircut.” However, he stated that it was “only a matter of time until crypto dollarization becomes the default and robs these central banks of their prime weapon.”
The podcaster Neil Jacobs shared a video featuring comments from the Mexican billionaire and bitcoin bull Ricardo Salinas Pliego. The latter stated:
“Everything we have in fiat is 100% seizable by the government. People don’t realize
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