The Bitcoin price gap in Lebanon continues to rise
According to data from the P2P trading platform Bitcoin Localbitcoins, the Bitcoin price gap in Lebanon is still increasing when the seller requests up to $ 15,000 for one BTC. With the average global transaction price at around 9,500 USD, it seems that the price of BTC in this Middle Eastern country has increased by over 50%.
In January 2020, the Bitcoin price gap in the country was only 25% amid the worsening cash crisis – which saw many people turn to the cryptocurrency market. According to Al Jazeera, unofficial capital controls imposed by banks have recorded a 40% reduction in the value of savings.
Although the seller may recommend such a high spread, there is little data available to indicate volume at this price.
Strict capital controls promote the adoption of cryptocurrencies in Lebanon
The Lebanese context provides more rigor for Bitcoin's status as a shelter asset for those caught in the midst of the economic crisis. From places like Venezuela to Turkey, BTC has also provided a viable alternative to the mainstream financial structure.
A serious cash crisis in Lebanon forced the country to implement strict capital controls, with domestic foreign exchange withdrawals and international money transfers set at $ 50 a month and $ 50,000 a year. .
Speaking to Al Jazeera, a group of Bitcoin traders in Lebanon said their average monthly trading volume has exceeded $ 1 million since the country introduced capital controls in November 2019.
Quoting an opinion from one of these traders, Al Jazeera revealed:
“Before the uprising, Bitcoin gave me an additional source of income, but now, it has certainly become the main income.”
In addition to trading, Bitcoin is also providing a channel for wealthy investors in the country to transfer capital abroad. Instead of a 40% haircut on the official forex market, Middle Eastern investors are turning to local Bitcoin traders to transfer money abroad.
Transboundary transfers with Bitcoin take only a few minutes, while the dire situation in Lebanon is currently witnessing international transactions that take up to 10 days to complete. The increasing distrust of the banking system also makes the adoption of cryptocurrencies larger in the country.
Since the beginning of this year, Bitcoin has increased by about 32%, reaching a peak in 2020 of $ 10,500 in early February.
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According to Bitcoinist
Translated by ToiYeuBitcoin