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Syria’s transitional government is considering a proposal to legalize Bitcoin and digitize the Syrian pound.
This marks a bold step to stabilize the nation’s battered economy and attract global investment.
Syria Considers Bitcoin as a Lifeline for the Economy
This plan, drafted by the Syrian Center for Economic Research (SCER), present how cryptocurrency adoption can help the country rebuild after the fall of the Assad regime. They envision Bitcoin as an important tool for Syria’s financial recovery.
Indeed, decades of war and economic mismanagement have left the country’s economy in ruins. According to World Bankthe Syrian economy has shrunk by more than 60% since 2010. The value of the Syrian pound has also plummeted, with inflation eroding public confidence in the traditional banking system.
To address these challenges, SCER proposes a multifaceted approach, including legalizing Bitcoin for trading, mining, and financial transactions. It also proposes to digitize the Syrian pound using Blockchain, stabilizing it by linking it to assets such as gold, US USD and Bitcoin. Furthermore, they recommend using untapped energy sources for Bitcoin mining while ensuring environmental sustainability and avoiding monopolies.
Cryptocurrencies have attracted attention in Syria, albeit in controversial ways. Groups such as Hay’at Tahrir al-Sham (HTS), a prominent opposition force, are said to have used Bitcoin to fund their operations. While SCER’s plan aims to legalize and regulate the use of cryptocurrencies, concerns remain about the potential for digital currency abuse by such groups.
“The central bank will oversee this process, ensuring a safe and responsible framework,” SCER emphasized in its proposal.
Legalizing Bitcoin could bring many benefits to Syria. First, it would open the door for international investments and partnerships, like those in El Salvador, providing a much-needed boost to the economy. It would also simplify remittances, a vital means for millions of Syrians who rely on remittances from abroad. Additionally, citizens will retain ownership of their digital assets, enhancing privacy and security.
Bitcoin’s decentralization could also help Syria overcome international sanctions that have long limited the country’s access to the global financial system. The strategy mirrors the approaches of countries such as Russia, Iran and North Korea, which have used cryptocurrencies to mitigate the effects of sanctions.
A Global Perspective on Bitcoin Reserves
Syria’s interest in Bitcoin fits with the growing global trend of exploring cryptocurrencies as a financial stabilization tool. As TinTucBitcoin reported, Switzerland is discussing including Bitcoin in its national reserves to promote financial innovation.
Similarly, a Russian lawmaker proposed creating a strategic Bitcoin reserve to improve financial stability amid sanctions. These international examples can provide valuable lessons for Syria as it designs its cryptocurrency journey.
Yet despite its potential, the proposal faces major hurdles. While Blockchain transparency can mitigate some risks by making transactions traceable, it also introduces regulatory challenges. Ensuring that cryptocurrency adoption supports legitimate economic activities without enabling illegal activities will require strict oversight.
Bypassing the traditional banking system could bring short-term relief but risks further international scrutiny, which could deepen Syria’s isolation. Building the infrastructure for a digital economy will require significant investment and time. Additionally, geopolitical complications pose challenges, with Syria’s economic recovery likely to involve regional actors such as Russia, Iran and Türkiye.
Although Russia and Iran have strong crypto economies, their future role in Syria’s reconstruction remains unclear. Neighboring countries such as Lebanon and Türkiye, which have also adopted cryptocurrencies, could become potential partners or competitors.
However, SCER’s ambitious proposal could help Syria escape its economic crisis. If implemented successfully, it could transform the nation’s financial status, providing stability and growth opportunities.
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