A proposal to legalize Bitcoin seeks to transform Syria’s financial landscape.
Syria, a country still in the process of recovering from the collapse of the Assad regime, is preparing for significant financial reform with the potential legalization of Bitcoin (BTC).
In an effort to tackle inflation, stabilize the economy, and attract foreign investment, the Syrian Center for Economic Research has introduced an ambitious initiative calling on the transitional government to adopt BTC and other cryptocurrencies.
After years of conflict and economic devastation, the country now faces the formidable challenge of rebuilding.
To provide essential stability to the currency, the proposal includes digitizing the Syrian pound on the blockchain and securing it with BTC, gold, and US dollars. Additionally, it proposes the legalization of BTC mining and trading within a comprehensive regulatory framework, aimed at ensuring strict oversight to avoid monopolies and environmental harm while encouraging local entrepreneurs to utilize Syria’s energy resources for mining operations.
Financial institutions, startups, and currency exchanges will be motivated to incorporate BTC into their services to ease remittances and create opportunities for businesses affected by years of instability. The program emphasizes privacy and security as core principles and assures Syrian citizens their right to maintain full self-custody of their digital assets.
Despite these ambitious goals, the nation faces numerous hurdles, including international sanctions, inadequate technical infrastructure, and the financial burdens left by the prior administration. The decentralized nature of BTC could allow Syria to bypass traditional banking institutions, a strategy previously employed by other sanctioned nations like North Korea and Iran.
It is important to differentiate the Syrian Center for Economic Research’s initiative to legalize BTC from the controversial use of cryptocurrencies by terrorist organizations like Hay’at Tahrir al-Sham. HTS, which has historic ties to al-Qa’ida, has allegedly used digital currencies to finance its activities, raising serious ethical and legal issues.
In contrast, the aim of the Syrian Center for Economic Research is to create a legitimate and transparent financial system under the oversight of the transitional government, designed to benefit the entire Syrian populace rather than any particular group.
Countries such as El Salvador and the Central African Republic have attempted to legalize BTC with mixed outcomes. While El Salvador has seen a boost in tourism and some foreign investment, it has faced criticism related to economic risks and debt challenges.
Syria’s situation is further complicated by geopolitical factors, which necessitate significant technological investments and international collaboration for success. If executed effectively, this strategy could position Syria as a leader in cryptocurrency adoption in the Middle East, but given the longstanding political and financial challenges, its success remains uncertain.
