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- Syria’s plan to adopt Bitcoin aims to stabilize the war-torn economy, curb inflation, and attract foreign investments for recovery.
- Critics warn Syria’s crypto adoption faces hurdles, including regulatory challenges, geopolitical complexities, and rebuilding its shattered digital infrastructure.
After years of war and devastation, Syria is eyeing a daring financial overhaul: the adoption of Bitcoin (BTC) as part of its recovery plan. The proposal, driven by the Syrian Center for Economic Research (SCER), hopes to stabilize the economy, curb inflation, and attract foreign investment.
The Syrian Center for Economic Research publishes a proposal for the transitional government to legislate #Bitcoin in Syria and digitize the Lira 👏 pic.twitter.com/dEm8gwfzdP
— Bam ⚡️باسم (@bamskki) December 31, 2024
The SCER’s blueprint includes digitizing the Syrian pound using blockchain technology backed by BTC, gold, and dollars. The initiative also seeks to legalize crypto mining and trading under strict regulations to avoid monopolies and environmental harm. The country aims to streamline remittances and create opportunities for businesses that have long endured economic volatility.
In addition to economic goals, privacy and security are central to the plan. Syrian residents will retain full custody of their digital assets, ensuring a transparent and equitable system under transitional government oversight.
Bitcoin’s Role in War-Torn Syria
The road to crypto adoption is anything but smooth for Syria. Years of war have left the country grappling with U.S. sanctions, crumbling infrastructure, and inherited debts. While the decentralized nature of Bitcoin could help bypass traditional banking systems—a tactic previously used by nations like North Korea and Iran—such a move invites scrutiny.
Critics argue that blockchain transparency, while beneficial, comes with its own set of regulatory hurdles. Ensuring cryptocurrency adoption benefits legitimate economic activities without enabling illicit operations will demand strict oversight. For a nation already under international sanctions, missteps could deepen its isolation.
Additionally, rebuilding a digital economy requires significant technological and regional collaboration investments. Syria’s geopolitical ties with countries like Russia, Iran, and Turkey add layers of complexity, making this effort as much a political challenge as an economic one.
Can Cryptocurrency Save Syria’s Economy?
Syria’s interest in cryptocurrency reflects a global trend. Countries like El Salvador and the Central African Republic have already adopted Bitcoin with mixed results. While El Salvador saw a boost in tourism and foreign investment, critics warn of heightened economic risks and growing debt.
Syria’s situation, however, is even more precarious. Regional players such as Lebanon and Turkey, both experimenting with crypto, could either partner with or compete against Syria in this emerging market. Meanwhile, Syria’s allies, Russia and Iran, boast strong crypto economies but remain wild cards in the nation’s reconstruction.
International examples, like Switzerland considering Bitcoin for national reserves and Russia proposing a strategic Bitcoin reserve, provide valuable lessons. However, experts caution that Syria’s success hinges on overcoming political barriers and building robust digital infrastructure.
The SCER’s proposal paints a vision of hope: a transparent, legitimate financial system that serves all Syrians. If executed effectively, it could place Syria at the forefront of Middle Eastern cryptocurrency adoption and offer a path out of its economic despair.
