The six million residents of Lebanon are living in a hyperinflation crisis that has made it difficult to access foreign currency. In an era when the national currency pumps and dumps like a low-cap altcoin, stablecoins are gaining significant use in the Middle Eastern country. In particular, Tether’s USDT has become a lifeline for many locals.

Architect Mohamad Gebrael, 27, is among them. Since the banking crisis erupted in spring 2019, he has been using USDT to cover essential expenses, such as Internet fees and electricity bills. Gebrael explains that the crisis has forced banks to close or restrict locals from withdrawing cash. And getting cash through international wire transfers hasn’t been a good option, as such services typically take U.S. dollars from the sender and payout Lebanese pounds at a lower rate than market value.

For Gebrael, the most useful aspect of USDT is that it’s pegged to the dollar. “That’s the main reason I rely on it, not because of crypto,” he tells DL News. The USDT dealer adds that his clients are typically older, wealthier individuals who were not familiar with cryptocurrency before the banking crisis. However, he notes that their reliance on stablecoins does not necessarily translate into enthusiasm for the industry as a whole.

While some of Gebrael’s clients are also interested in speculative crypto assets, most are just looking for a safe way to get their hands on “fresh dollars.” And in that sense, the USDT backchannel that he and others run is a valuable tool. It’s important to note, however, that the top of this supply chain is largely controlled by individuals, as higher-level dealers have access to the high levels of USD liquidity necessary to process large transactions. For more details please visit crypto lebanon

One such individual, who requested anonymity to speak freely, describes the process of making a USDT-for-USD transaction over a Telegram group. The trades are usually conducted at public spaces, such as cafes or the ground floor of a residential building. A middleman, known as a broker, takes banknotes from the buyer and exchanges them for USDT, taking a small fee in the process.

In addition to the person-to-person trading that’s going on in private Telegram groups, several companies and retail outlets — such as Buy Bitcoin Lebanon and BTCLeb — have started offering USDT for sale with in-person payments. These retailers offer a more secure buying experience but are expensive. For those wary of person-to-person trading, reputable mobile wallet apps such as Sinbad and Pursa allow users to exchange their crypto for cash in Lebanon while providing transparent and fair fees. Nevertheless, these options are only available to those with a stable cryptocurrency balance. For those who don’t, a remittance service such as Moneygram may be an alternative solution. However, these services are not yet widely available in the country. The Lebanese central bank has warned of the dangers of storing money in cryptocurrency, and most people do not have a stable crypto balance.