Distrust in Lebanese banks spurs bitcoin boom | Lebanon News

Beirut, Lebanon – When Maher, an engineer in his mid-30s, returned to Lebanon flush with cash from working in the Gulf, he deposited his hard-earned savings in a bank – believing they would be safe.

But as Lebanon has spiralled into its worst economic crisis in decades, banks have imposed informal capital controls that force people to withdraw their savings in Lebanese pounds at the official exchange rate that effectively values their savings at 40 percent less than what its worth on the parallel market.

“Nothing can prepare you for the shock of this,” Maher told Al Jazeera.

But Maher, who asked his surname be withheld to protect his privacy, is not standing by helplessly. He is trying to move what is left of his savings out of Lebanon via a financial instrument many in the country have not embraced – until recently.

Bitcoin.

“Suddenly everything turns upside down and all the options are open,” said Maher.

With confidence in Lebanese banks at an all-time low over increasing…