The Banque du Liban (BDL) is planning to launch its own digital currency, the central bank governor said recently, as reported by Thomson Reuters Zawya.

Speaking to participants in the 7th CSR Lebanon Forum, governor Riad Salameh said:

“We understand that electronic currency will play a prominent role in the future. But BDL must first make the necessary arrangement before taking this step and develop [a] protection system from cybercrime. Both the Special Investigation Commission and Banking Control Commission are cooperating to prevent such electronic crimes.”

He went on to state that the new digital currency will fall under the Lebanese law and monitored by the central bank.

However, Salameh cautioned against bitcoin and other digital currencies, saying that they are a big threat to the consumer and payment systems.

“These [bitcoin] are not currencies but rather a commodity whose prices rise and fall without any justification. For this reason, BDL has banned the use of this currency in the Lebanese market. The digital currency will be issued by BDL and will be available in the next few years,” he said.

In a warning issued in December 2013, the central bank said that I does not guarantee bitcoin or other cryptocurrencies, which are subject to sharp volatility in prices. It also highlighted the risks relating to money laundering and terrorism financing, adding it warns against buying, holding, and using such money.

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