The ongoing anti-government protests in Lebanon that started on 17 October enters in the eleventh day where people have no access to their banking accounts, due to closed banks and empty ATMs.
As if that wasn’t enough the Lebanese Public Prosecutor Ghassan Oueidat, forced a ban on taking large amounts of dollars in cash via air or land borders, with this ban to stay valid until the central bank figures out a solution to regulate this transfers according to Reuters.
The project aims to build a trading platform and is supported, among others by billionaire VC fund Tim Draper.
Before this ban people were able to take out of the country large amounts of physical dollars with a permit from the Lebanese customs office.
Since the beginning of protests eleven days ago the whole banking system is closed and will remain closed until protests continue. All these measures are in place because of fear that people will rush to withdraw their money.
The protest in Lebanon is one of the biggest in the country’s history. People blame the political leaders for the economic collapse and are asking for the government to resign. However, there are no signs that a compromise will be found between protesters and authorities.
The Lebanese pound is actually pegged to the U.S. dollar and the country is one of the most indebted in the world.
Recently the economy has slowed down more due to the country deficit and the inability to pay for imports a thing that generated unprecedented financial pressure.
We wrote before about countries in similar situations where the monetary system failed and bitcoin became an alternative. Despite corruption and other bad actors, the root of the problem is the power a bunch pf people have over the whole people’s finances.
This is why a permissionless system is needed where nobody can forbid anybody to access his money. There is a need to separate the money from the state, and these developments in countries like Lebanon, Chile, Venezuela, Argentine, Zimbabue and others, give more reasons why this separation is an urgent need to preserve the democracy in similar situations.
Central Banks in many countries are preparing for a global financial system collapse repatriating their gold reserves and increasing it buying more physical gold to be protected in case of a big reset. The problem is that bankers are securing themselves but nobody warning the people about the risks the FIAT currencies are coming to.