Banks are on fire

05 March, 2023

In recent times, Lebanon and Nigeria have been in the news for all the wrong reasons. 

The sight of banks burning is usually something reserved for Hollywood action movies, but tragically it’s a reality in some parts of the world. In Lebanon, six banks were set on fire in response to the ongoing economic crisis, leaving many depositors without access to their money. It’s a heartbreaking example of how “politicized” fiat money can lead to the collapse of an entire financial system and how traditional banking practices can fail their customers when they need them the most.

The crisis in Lebanon began with a liquidity crisis in 2019, a euphemism for the onset of currency failure. The government tried to assure the public that there was no cause for concern, but they had already shut down all the exits and allowed the system to collapse.

As time went on, the restrictions only increased, and in October 2022, Lebanese banks shut down their operations due to safety concerns. Depositors were unable to access their money, and as the local currency lost value, they helplessly watched their savings disappear.

The Lebanese pound has since lost 97% of its value in dollar terms, and 80% of Lebanon’s population now lives below the poverty line. Similar incidents are now occurring in Nigeria, where protesters recently set fire to three commercial banks in protest over withdrawal restrictions.

As traditional banking systems continue to fail their customers, people are turning to alternative forms of currency to protect their wealth. One such option is cryptocurrency, a digital asset that operates independently of traditional banking systems and offers greater security, transparency, and accessibility.

These Fires are Not Figurative – They are Real

The current state of affairs is deeply concerning. People are suffering. Frustration and outrage have grown, with open hostility directed toward those deemed responsible. Angry mobs have set their sights on Salim Sfeir, the chief of Lebanon’s bank association (who is also CEO of Bank of Beirut), in a desperate demand for accountability.

Lebanon is not the only country facing this situation; similar incidents are playing out in Nigeria, where protestors have set two commercial banks on fire. Unfortunately, this situation is not unique to these two nations. It’s a global problem, and we as responsible citizens must demand answers from our political leaders. It’s alarming to see that the US holds $31 trillion in debt

This reality serves as a clear warning: We must take action now before it’s too late.

Amidst Chaos Comes Hope in the Form of Cryptocurrency

Cryptocurrency is a decentralized digital asset – not controlled by any government or financial institution – designed to work as a medium of exchange. It uses strong cryptography to secure financial transactions, verify the transfer of assets, and control the creation of additional units, making it an attractive alternative to traditional currency.

For emerging countries, cryptocurrency can be a life-changing instrument. In nations like Lebanon and Nigeria, where the financial system is in shambles, citizens are turning to cryptocurrency as a means of protecting their wealth. With cryptocurrency, they can store their money safely without the fear of it being devalued or seized by the government.

Furthermore, cryptocurrency can also help to boost the economy of developing countries. By embracing its underlying blockchain technology, sovereign states can attract new investments and generate fresh economic frameworks. Cryptocurrency also helps to reduce the reliance on traditional banking systems, which are often corrupt and inefficient.

The world is changing, and cryptocurrency is at the forefront of this new paradigm shift. Crypto will revolutionize the manner in which we engage in commercial transactions and interact financially. While the infernos rage on in Lebanon and Nigeria, the crypto community is offering an alternative path, one that is transparent, secure, and accessible to all.

The moment has arrived for the world to recognize the enormous potential of cryptocurrency. Rather than placing our faith in conventional financial systems that have repeatedly demonstrated their fallibility, we must adopt this disruptive technology and regard it as a catalyst for change. 

The fires in Lebanon and Nigeria are a wake-up call: the world must start exploring alternative financial solutions; cryptocurrency could be the answer.

I’m Bruno Calabretta, Founder at Aurora Coaching, Blockchain Development Manager at FederItaly, Crypto Coach, Web3 Expert, Public Speaker and Crypto Event Organizer. Connect with me on LinkedIn.

I am an expert in cryptocurrency but I’m not a licensed financial advisor. My thoughts about this environment are not intended to replace the services of a licensed financial advisor but instead to supplement it by giving information and opinions related to cryptocurrency’s platforms, blockchain technology, general topics, and best practices.

I don’t believe in or endorse day-trading in crypto. Far more people lose money than make money doing this. The main rule is always the same: DYOR.