Crypto as a Lifeline to Revive Economy
Syria’s transitional government is considering proposals to legalize Bitcoin and digitize the Syrian pound.
It marks a bold move by the country to stabilize its shattered economy and attract global investment.
Syria considers Bitcoin a lifeline for its economy
The plan was developed by the Syrian Center for Economic Research (SCER), contour How cryptocurrency adoption can help the country rebuild after the fall of Assad’s regime. It sees Bitcoin as an important tool for Syria’s financial revival.
In fact, decades of war and economic mismanagement have left the country’s economy in ruins. according to world bankSince 2010, the Syrian economy has shrunk by more than 60%. The Syrian pound also depreciated sharply, inflation Undermining public trust in traditional banking.
To address these challenges, SCER recommends a multifaceted approach that includes legalizing Bitcoin trading, mining, and financial transactions. It also recommends using blockchain to digitize the Syrian pound and backing it with assets such as gold, U.S. dollars and Bitcoin to stabilize its exchange rate. Furthermore, it proposes utilizing untapped energy resources for Bitcoin mining while ensuring environmental sustainability and avoiding monopolies.
Cryptocurrencies are already gaining traction in Syria, albeit in controversial ways. Groups such as Hayat Tahrir al-Sham (HTS)A prominent opposition force reportedly uses Bitcoin to fund its operations. Although SCER’s plans aim to legalize and regulate the use of cryptocurrencies, there are still concerns that these groups may misuse digital currencies.
“The central bank will oversee this process to ensure a safe and accountable framework,” SCER stressed in its proposal.
Bitcoin legalization could offer Syria many advantages. First, it will open the door to international investment and partnerships, as El Salvadorproviding much-needed economic growth. It would also simplify remittances, a lifeline for millions of Syrians who rely on foreign funds. Additionally, citizens will retain self-keeping their digital assets, enhanced privacy and Safety.
Bitcoin’s decentralized nature could also help Syria bypass international sanctions that have long restricted its access to the global financial system. The strategy mirrors the approach taken by countries such as Russia, Iran and North Korea, which use cryptocurrencies to mitigate the impact of sanctions.
A global perspective on Bitcoin reserves
Syria’s interest in Bitcoin coincides with a global trend exploring cryptocurrencies as financial stabilizers. According to BeInCrypto, Switzerland Discussions are underway to include Bitcoin in national reserves to drive financial innovation.
Likewise, a russian parliamentarian Proposing to establish a strategic reserve of Bitcoin to increase financial stability during sanctions. These international cases could provide valuable lessons for Syria as it designs its cryptocurrency journey.
However, despite its potential, the proposal still faces significant obstacles. While the transparency of blockchain can mitigate some risks by making transactions traceable, it also creates regulatory challenges. Ensuring that cryptocurrency adoption supports legitimate economic activity and does not lead to illegal operations requires strict oversight.
Bypassing the traditional banking system may provide short-term relief but risks further international scrutiny that could deepen Syria’s isolation. Building digital economic infrastructure requires significant investment and time. In addition, geopolitical complexities pose challenges, with Syria’s economic recovery likely to involve regional players such as Russia, Iran and Türkiye.
Despite Russia and Iran’s powerful crypto-economies, their future roles in Syria’s reconstruction remain uncertain. Lebanon and other neighboring countries turkeyAlso embraced cryptocurrencies and could become potential partners or competitors.
Still, SCER’s ambitious proposals could lift Syria out of economic despair. If implemented successfully, it could transform the country’s financial situation, providing stability and growth opportunities.
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