The central bank of Lebanon has announced its plans for introducing a central bank digital currency (CBDC). This is the latest country to join the ranks of other like it towards the creation of a centralized digital coin for mass usage. The plan is to release the digital fiat sometime next year.

Riad Salameh, the bank’s governor, confirmed this endeavor. Furthermore, Salameh firmly believes that the integration of a digital currency will increase the confidence of the public in the local banking industry. The transition to a cashless system will work in favor of the banking system.

The reveal is not that surprising, because back in 2019 the bank proposed plans for introducing a digital fiat.

Today Lebanon’s economy is in a crisis state. The government’s ties to a number of private banks have also contributed to the overall chaos that the country finds itself in today. This also resulted in Lebanon’s default on debts in March of this year. Riad Salameh pointed out that Lebanese citizens are keeping more than $10 billion in cash at their homes, as a result of the crisis.

Many other countries have begun the process of testing their own versions of a digitalized cryptocurrency. The major player today is China; the country has completed the first step and is now approaching the testing procedure of its digital yuan.

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