The latest decision taken by the central bank to raise the withdrawal limits under Circular 158 from $800 to $1,000—of which $200 will be credited to a bankcard—and under Circular 166 from $400 to $500—of which $100 will be credited to a bankcard—is undeniably a step in the right direction. By encouraging depositors to transition toward digital channels, it signals an institutional awareness that Lebanon can no longer afford to operate a largely cash-based economy. Digitisation helps reduce tax evasion, money laundering, corruption, and the inefficiencies that have long plagued the Lebanese financial system.
However, the circular also reveals a critical imbalance: it places the burden almost entirely on depositors while leaving the receiving end of everyday transactions—retailers, service providers, and, most importantly, the government—largely untouched. A genuine digital transformation cannot function as a one-way street. For Lebanon to modernize its financial landscape, responsibility must be shared across the entire payment ecosystem.
Moreover, if the central bank is now encouraging digital payment through bankcards, then citizens must be able to use these same cards to pay state dues such as fines, electricity bills, and other public payments. There is no value in loading funds onto bankcards if government entities—and even retailers—continue to refuse card payments in favor of cash. The government enforcing the digitisation should be the first to accept it.
Digital Payments Should Begin With the Public Sector
Before compelling citizens or private businesses to reform their habits, the government must lead by example. A true digital economy begins with digitized public payments—transactions that affect millions of households on a monthly basis.
Government dues such as electricity bills, water bills, telecommunications fees, municipal fees, port and customs dues, and eventually taxes and penalties should transition fully to card or electronic payments, eliminating cash wherever possible.
This shift has several immediate advantages:
1. Eliminating Corruption and Middlemen
Cash-based government collections create fertile ground for leakage, side payments, and bureaucratic obstruction. A digital system ensures that every transaction flows directly into the Ministry of Finance’s account at the central bank (BDL), reducing opportunities for manipulation. We witnessed the misuse of public money in recent years when the country’s two largest cash-handling companies used state funds to extend high-interest loans to banks in the interbank market. Payments should go directly from the public’s pocket to the Ministry of Finance’s account—online and without intermediaries.
2. Transparent, Real-Time Revenue Tracking
With digital payment flows in place, the Ministry of Finance gains real-time visibility into revenue collection—critical for planning, budgeting, and ensuring compliance. The opacity of cash has long enabled systemic inefficiencies; digitisation would introduce long-overdue transparency and accountability.
3. Lower Administrative Costs
Digital payments minimize the need for manual processing, cash handling, and physical reconciliation—each of which is costly and prone to error or exploitation.
The Ministry of Finance Must “Close the Loop”
The central bank has taken an initial step with its circulars targeting depositors. But unless the Ministry of Finance follows with parallel reforms, the system remains incomplete. Digital deposits mean little if the broader economy—especially the state—continues to operate primarily in cash.
To close the loop, the Ministry of Finance and BDL must coordinate to:
Only through joint action can Lebanon move beyond fragmented efforts and adopt a coherent, national digital-payment strategy.
Only After Government Reform Should the Private Sector Be Required to Follow
Once the public sector is digitized and normalized, the private sector can be brought into alignment. Retailers, supermarkets, and service businesses should eventually be required to accept electronic payments and limit cash intake—such as capping cash payments at no more than 20% of a transaction.
This phased approach is essential:
Reforming the private sector before fixing the public sector simply shifts the burden without providing the necessary infrastructure or leadership.
A New Era of Transparency and Modernization
Lebanon stands at a crossroads. Digitisation is not merely a financial adjustment—it is a national modernization effort. The IMF and the World Bank, in advising the government, should strongly push for the adoption of such measures.
By reducing dependence on cash, Lebanon will increase tax compliance, reduce corruption, improve financial transparency, lower transaction costs, and integrate more effectively with global financial standards.
But this future is only possible if the government leads the transformation. Citizens cannot be expected to embrace digital payments while essential public services remain trapped in inefficient, cash-based systems.
The central bank’s circular is a welcome beginning, but it is only that—a beginning. Lebanon must adopt a comprehensive approach in which government, retailers, and depositors operate within a unified digital framework.
Start with the state. Digitize public payments. Build the infrastructure. Set the example.
Only then can the private sector be expected to follow—and only then can Lebanon truly enter the digital age with transparency, accountability, and efficiency at its core.
سمارة قزي بعيدة عن الجو الإعلامي اللبناني وهي واقعية تتعامل مع الممكن ،
وتأخذ بعين الاعتبار الخصوصية للوضع اللبناني حيث أنه هناك شبه دولة ومجموعات انتهازية تلتف على التشريعات والقوانين
وإرسال مقال قزي كان لي بابا ومدخلا إلى اعلامي الاقتصاد المختلف سيستغرق مني أسبوعا في الاقتراب منه.