The Shutdown of Banks in Lebanon Is the ‘Most Potent Case’ for Crypto says Nassim Taleb

October 29, 2019 / by Crypto.IQ

Civil unrest in Lebanon has led to all banks shutting down in the country, leaving businesses and citizens without access to basic banking services. Naturally, cryptocurrency supporters are urging the Lebanese to start using cryptocurrencies instead of fiat ever since the news came out that the banks in the country aren’t planning to open during the ongoing unrest.

It a recent debate on Twitter which started on the 24th of October, commentators expressed frustration that the Lebanese population is still managing with no banking services available to them for over a week. 

After the civil unrest, banks were closed all over the country. After six working days, a senior executive from a bank said that this status quo will continue until everything gets back to normal.

“Once normalcy is restored, we are very happy that we can resume servicing our customers in full capacity,” said Salim Sfeir, head of local lender Bank of Beirut. 

Earlier, there were long queues at the ATMs because worried customers tried to attempt taking their wealth out. Almost 65% of Lebanese use banks, leaving two thirds of Lebanon without access to their personal funds. 

Shutdown can be the “most potent case for crypto”: Taleb

Crypto Twitter, of course, had the solution. For the renowned Lebanese statistician and “The Black Swan” author Nassim Taleb, the policy which came from the government was sufficient impetus to adopt crypto directly. 

“The most potent case for cryptocurrencies: banks are never there when you need them,” he summarized the whole story in one of his tweets. Continuing further he said, “And they are trying to bully the public so they avoid accountability and profit disbursements. Bankers are legal crooks.”

This anger is pretty much justified considering various episodes of economic chaos in the world, in which states withhold money from their own citizens. Besides Hong Kong this year, India makes another infamous example, which started a range of botched currency reforms in 2016 due to which millions of individuals were left with nothing but worthless notes. 

There was soon a dramatic increase in India’s market for Bitcoin, before their hardline policy lead the exchange sector to evaporate a year ago. 

What’s worth noting here is that, according to Bitcoin-Uptime, the decentralized BTC network operates round the clock maintaining 99.98% uptime since its first day.