Key Takeaways
- Syria proposes legalizing Bitcoin and digitizing its currency.
- The plan includes leveraging energy resources for Bitcoin mining.
- Challenges include infrastructure, regulations, and geopolitical issues.
Syria’s transitional government is deliberating a proposal to legalize Bitcoin and digitize the Syrian pound in a bold bid to stabilize its shattered economy.
The plan, developed by the Syrian Center for Economic Research (SCER), highlights using blockchain technology to rebuild financial infrastructure.
Decades of war and mismanagement have devastated Syria’s economy, which has shrunk by over 60% since 2010, according to the World Bank.
The Syrian pound’s plummeting value has further eroded trust in the banking system.
Proposed implementation
The SCER proposal outlines several steps:
- Legalizing Bitcoin for trade, mining, and transactions,
- Creating a blockchain-backed digital Syrian pound,
- Leveraging untapped energy resources for Bitcoin mining.
However, the central bank would regulate the system to ensure security and prevent misuse.
Bitcoin’s decentralized nature could also allow Syria to bypass international sanctions that have restricted its financial system.
The SCER emphasized:
The central bank will oversee this process, ensuring a secure and accountable framework.
Challenges & opportunities
Despite its potential, the plan faces hurdles.
Building digital infrastructure, addressing international scrutiny, and ensuring regulation to prevent illicit uses remain significant challenges.
Additionally, partnerships with regional players like Russia, Iran, or Turkey may be critical for implementation.
If successful, Syria could join nations like El Salvador in leveraging Bitcoin to attract investments and simplify remittances, offering citizens financial stability in a volatile region.
