The Central Bank of Lebanon (Banque du Liban, BDL) is exploring the development of a state-sponsored cryptocurrency, according to Governor Riad Salameh. This announcement was made during a recent conference in Beirut, signaling the country's progressive approach to digital finance.
Key Details About Lebanon's Crypto Initiative
Governor Salameh emphasized that digital currencies will play significant future roles, but stressed the need for proper infrastructure first. The BDL must:
- Establish necessary regulatory arrangements
- Develop cybercrime protection systems
- Enhance electronic crime prevention capabilities through collaboration between the Special Investigation Commission and Banking Control Commission
The proposed digital currency would:
- Be recognized under Lebanese law
- Fall under BDL supervision
- Maintain stability of the national monetary system
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Bitcoin Stance and Regulatory Position
While embracing sovereign digital currency, the BDL maintains cautious positions on existing cryptocurrencies:
- Bitcoin is banned in Lebanese markets
- Considered a commodity rather than currency
- Price volatility deemed unjustified
- Potential threats to consumers and payment systems noted
Governor Salameh reassured that Bitcoin poses no threat to the Lebanese pound, citing the BDL's $43.5 billion foreign currency reserves.
Historical Context
The BDL's 2013 statement on cryptocurrencies established:
- Warnings about virtual currency risks
- Prohibitions on certain crypto activities
- Framework for future digital currency considerations
Implementation Outlook
Current uncertainties include:
- Adoption timeline
- Technological infrastructure requirements
- Public/private sector integration models
FAQ Section
Why is Lebanon creating its own cryptocurrency?
To modernize financial systems while maintaining monetary stability under central bank oversight.
How does this differ from Bitcoin?
Unlike decentralized cryptocurrencies, Lebanon's digital currency would be government-issued, regulated, and legal tender.
When will this launch?
No specific timeline yet—the BDL is currently in research and preparation phases.
Are other cryptocurrencies legal in Lebanon?
No, the BDL prohibits Bitcoin and similar decentralized cryptocurrencies in the Lebanese market.
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Future Prospects
This initiative positions Lebanon among nations exploring sovereign digital currencies while taking a protective stance against unregulated crypto assets. The BDL's approach balances innovation with financial security, focusing on controlled implementation rather than open cryptocurrency markets.