Lebanon is working on its own central bank digital currency (CBDC) and plans to introduce it as early as next year, Bloomberg has learned, citing Governor Riad Salameh. With the CBDC, the country wants to "restore confidence in the banking sector" and digitize payments system.
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Salameh also urged financial institutions to begin restructuring, including recapitalization by 20%.
"Lebanon does not have any natural resources and we have to keep the gold because its an asset that could be liquidated in foreign markets if we face an inevitable, fateful crisis," he added.
On 4 August 2020, the explosion of 2,750 tons ammonium nitrate in a Beirut port caused domestic reverberations throughout Lebanon with more than 150 people killed. By August 9, French President Emmanuel Macron had counted over €250 million of global contributions to the relief effort.
Meanwhile, Canada is calling for a global approach on a CBDC with G7 partners. The Bank of Canada Governor Tiff Macklem says the globally coordinated approach is needed in order "to prevent surprises" and to keep such tools from being used by bad actors
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