Capital Controls to Push Bitcoin Demand: Lebanon Bans Large Dollar Cash Outs

Lebanon's government isn't the only one driving its citizens to cryptocurrencies, as we reported last week, Argentina has once again cut the dollar limit. These types of sanctions are exactly why the world needs a better and more fluid type of money; like Bitcoin.

Lebanon Public Prosecutor Ghassan Oueidat released an order that has imposed a ban on traders and money exchangers from taking significant amounts of dollar currency out of the country. This is until a new mechanism is determined for regulating such transfers.

Central bank Governor Riad Salameh also said in a statement that currency exchanges must be licensed by the central banks to move funds.

Nationwide protests have caused banks to be closed for eight working days and would remain closed until stability is restored. Protests in Lebanon are targeted against political officials blamed for corruption and steering its economy to collapse.

Lebanon is one of the world’s most heavily indebted countries where capital inflows have slowed down, generating financial pressures seen for the first time in decades, which has led to the emergence of a parallel market for dollars.

On Monday, Argentina also tightened the currency controls after the opposition’s Alberto Fernandez won the presidential elections.

The central bank will restrict the dollar purchases to just $200 per month compared to $10,000 previously. The latest move is to preserve the international reserves during the political transition that will take place on Dec. 10. Just last week, Argentines rushed to buy dollars and withdraw their deposits.

“Restricting dollar purchases in Argentina probably won’t ease pressure on the peso, with the weaker bias for the currency likely to continue,”

said Toru Nishihama, an emerging-market economist at Dai-ichi Life Research Institute in Tokyo.

“Concerns about a potential default and deterioration of the nation’s fiscal condition will linger.”

Mauricio Macri imposed capital controls at the beginning of September after the peso plunged.

“Expect the new government to extend the capital controls as well as take over the central bank, among other things. Argentina's currency black market will balloon,”

said economist and trader Alex Kruger.

“A bitcoiner's dystopian world is shaping up down under,” he added.

Argentina and Lebanon, however, are not the only countries that have imposed capital controls. China, Inda, Russia, among other countries have taken similar steps in the past year.

All these scenarios push for the need of Bitcoin, a decentralized digital currency that isn’t controlled by any entity.

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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