A Crypto.IQ article from a couple of weeks ago discussed how Lebanon was entering a currency collapse situation, due to the Lebanese government defaulting on its national debt while simultaneously printing money out of control, which is a side effect of the global economic crisis caused by the Coronavirus Pandemic.
At the time that article was written the exchange rate was 6,000 Lebanese Lira (LBP) per USD, which was already far devalued from its official long term peg of 1,507 LBP per USD.
However, things have gotten even worse and the LBP has entered a new stage of rapid devaluation, and now the exchange rate is 9,600 LBP per USD.
This means each LBP has a value of $0.000104, which is practically the same as the value of 1 Satoshi, which is $0.000092.
At the current pace of inflation the LBP should fall below the value of a Satoshi within a week, and eventually the LBP will become completely worthless.
Notably, Lebanon has reached the point where the LBP is losing value overnight, with an inflation rate of 5-10% per day. This is creating an absolute panic where people have to buy goods immediately when they are paid, or their money will evaporate while they sleep.
Further, Lebanon is embroiled in riots, poverty and starvation are becoming widespread, and a large fraction of citizens are planning to leave the country once Coronavirus travel restrictions are lifted.
Interest in cryptocurrency in Lebanon is rising due to this situation, since cryptocurrency has an extremely stable value in comparison to the LBP. That being said, cryptocurrency may be a useful tool, but the situation is too far gone for cryptocurrency adoption to provide any significant relief.
Zooming out, the situation in Lebanon may feel far away and unthinkable, but it may be a preview of how the global fiat system could ultimately end, especially if major Central Banks continue to print trillions of dollars every month.