In a bold move to rejuvenate its post-war economy, Syria is considering the legalization of Bitcoin as part of a comprehensive economic reform strategy. The Syrian Center for Economic Research has proposed a plan to the transitional government aimed at curbing inflation, stabilizing the economy, and attracting international investments by embracing Bitcoin and other digital currencies.
The proposal outlines the digitization of the Syrian pound, which would be backed by Bitcoin, gold, and the US dollar, to lend the currency much-needed stability. Additionally, it suggests the legalization of Bitcoin mining and trading, supported by a robust regulatory framework to oversee mining activities and prevent monopolistic practices and environmental harm.
As part of this initiative, financial institutions, startups, and currency exchanges are encouraged to integrate Bitcoin into their services, facilitating streamlined remittances and generating opportunities for businesses affected by years of economic instability. Privacy and security remain central tenets of the program, ensuring that Syrians maintain full ownership of their digital assets.
The proposal also recognizes the significant hurdles Syria faces, including sanctions, a lack of technological infrastructure, and the debts accumulated by the former regime. The decentralized nature of Bitcoin could provide Syria with a way to bypass traditional banking systems, a strategy employed by other heavily-sanctioned nations such as North Korea and Iran.
However, it’s essential to differentiate the Syrian Center for Economic Research’s objectives from the use of cryptocurrencies by groups like Hay’at Tahrir al-Sham, which has allegedly funded operations through digital currencies, raising ethical and legal debates.
Unlike these contentious uses, the Syrian proposal seeks to build a transparent and legitimate financial system under government oversight, aiming for widespread economic benefit. While similar endeavors in countries like El Salvador—a move that has faced criticism despite some economic benefits—Syria’s path is fraught with challenges, notably geopolitical tensions that require significant technological investment and international cooperation.
If successful, Syria could position itself as a leading adopter of cryptocurrencies in the Middle East, although long-standing political and financial issues could hinder this ambition.
