DailySun
The initiative to legalize Bitcoin is set to transform the financial landscape of Syria.
As Syria continues its recovery from the collapse of the Assad regime, it prepares for significant financial reforms centered on the legalization of Bitcoin (BTC).
In an effort to combat inflation, stabilize its economy, and attract foreign investments, the Syrian Center for Economic Research has proposed an ambitious plan urging the transitional government to adopt BTC along with other cryptocurrencies.
After years of conflict and economic devastation, the nation faces the immense challenge of rebuilding.
The proposal aims to enhance the currency’s stability by digitalizing the Syrian pound on the blockchain, supported by BTC, gold, and US dollars. It also seeks to promote the utilization of Syria’s energy resources for cryptocurrency mining while providing legal frameworks for BTC mining and trading, ensuring strict regulations to avoid monopolies and environmental harm.
The initiative encourages financial institutions, startups, and currency exchanges to incorporate BTC into their services to facilitate remittances and create opportunities for businesses affected by prolonged instability. Emphasizing privacy and security as core principles, the program affirms the right of Syrian citizens to maintain full self-custody of their digital assets.
Despite these ambitious targets, the country faces multiple challenges, including foreign sanctions, a lack of technical infrastructure, and debts from the former regime. The decentralized nature of BTC might provide a way for Syria to bypass traditional banking institutions, similar to strategies adopted by countries under severe sanctions like North Korea and Iran.
It is vital to differentiate between the Syrian Center for Economic Research’s advocacy for BTC legalization and the controversial use of cryptocurrencies by terrorist organizations such as Hay’at Tahrir al-Sham. HTS, previously associated with al-Qa’ida, has reportedly used digital currencies for its funding, raising notable ethical and legal issues.
In contrast, the Syrian Center for Economic Research aims to create a legitimate and transparent financial system overseen by the transitional government, designed to benefit the entire Syrian populace rather than specific factions.
Countries like El Salvador and the Central African Republic have experienced varying success in their attempts to legalize BTC. El Salvador has faced criticism regarding economic risks and mounting debt, although it has seen an uptick in tourism and some international investments.
On the other hand, Syria’s challenges are exacerbated by geopolitical factors, highlighting the need for significant technology investments and international partnerships for success. If implemented, this strategy could position Syria as a leader in cryptocurrency adoption in the Middle East, yet longstanding political and economic obstacles cast doubt on its potential success.
