Lebanon’s Central Bank plans to issue its own digital currency to modernize the financial sector in the country. It is possible that the national digital money project will be ready within the next year.
According to the news shared by BNN Bloomberg, after countries like China, the Lebanese Central Bank took action to develop its own digital currency. Lebanon, which has been struggling with inflation for a few months and revising its economic policies, will apply for digital central bank money (CBDC) in order to stimulate the country’s economy.
Why Lebanon turned to digital money
Lebanon’s Central Bank Governor Riad Salameh explained in a statement today why they are considering developing their own digital currency. Salameh stated that a digital money project to be developed could both refresh the trust in the country’s banking sector and facilitate the transition to a cashless society.
According to the BNN Bloomberg report, the Central Bank Governor also reminded that Lebanon is not a country rich in natural resources. Salameh said that, he explained that the gold in the country’s reserves can be sold if the “inevitable point” is reached in the fight against inflation.
The country continues to fight inflation
Trying to combat the coronavirus like many other countries, Lebanon is also fighting against inflation. According to the Arabian Business report, the economic data for August showed that the inflation rate in the country increased up to 120 percent within a year.
The World Bank, which prepared a report on the Lebanese economy, also announced that the country’s gross domestic product could drop by 19.2 percent at the end of the year.