Lebanon's Financial Crisis & Bitcoin (Part 1): A Central Bank Ponzi Scheme
“The next year or two is going to give very interesting examples of the role of Bitcoin and other cryptocurrencies in countries that are like Lebanon — where people, on the one hand, are well-educated, wealthy, and have access to information and on the other hand, are facing a banking crisis that has led a lot of them to distrust their banks.” -Mike Azar
In this two-part series, Dave Hollerith interviews members of Lebanon's diaspora migrant population to understand the country's current financial crisis and why Bitcoin is both an important asset for mitigating its risks as well as how it could play a roll in helping those who live in Lebanon.
This episode (Part 1) focuses on understanding the current Lebanese financial crisis in all it's complex historical, political and economic turmoil. Dave talks with Mike Azar, a financial consultant and lecturer, who walks him through how the Lebanese financial crisis started and what it could mean for the countries future.
Topics discussed:
- How Lebanon's diaspora plays a crucial role in this crisis.
- How political and economic mismanagement led Lebanon into its currently tenuous economic position.
- Why the Lebanese central bank's insolvency is unique.
- How economic factors such as inflation, unemployment, and civil unrest will likely get worse in Lebanon's near future.
- The hard decisions that must be made to prevent the crisis from getting worse.
- What current solutions like Bitcoin or a central bank-backed digital currency are currently being discussed to help mitigate the crisis.
Resources:
Twitter:
- Mike Azar (@Azarstweets)
- Dave Hollerith on Twitter
- Bitcoin Magazine on Twitter
Sponsors:
* Intro music courtesy of Creative Commons
* Outro music courtesy of Youtuber and musician, LordPatrick123456
DISCLAIMER: The following content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice.