Amid economic difficulties, Syria has unveiled a new plan involving Bitcoin. The government is bringing forward a proposal to integrate BTC into its financial system. Here are the details of this significant development:
Syria Proposes Bitcoin Adoption Plan
The Syrian Center for Economic Research (SCER) has discussed the idea of using Bitcoin to tackle the country’s currency crisis and create a digital version of the Syrian Lira. On December 31, 2024, Bam, the founder of the Arabic crypto channel Bitcoin 21, shared SCER’s proposal on the social media platform X. Bam stated:
“The Syrian Center for Economic Research proposes that the interim government legalize Bitcoin in Syria and digitize the Lira.”
SCER intends to legitimize Bitcoin for various uses, including trade and mining, and it proposes a digital version of the Syrian Lira backed by assets such as gold, US dollars, and Bitcoin. By utilizing blockchain technology, the center envisions greater currency stability and aims to protect citizens from ongoing economic hardships.
Additionally, SCER’s proposal emphasizes the potential of using untapped energy resources for environmentally sustainable Bitcoin mining. This approach aims to modernize the economy while maintaining fairness.
Potential Challenges
This initiative is bound to face significant challenges. SCER points out that Syria’s recovery from ongoing conflict, combined with international sanctions and limited technological infrastructure, poses substantial obstacles to the adoption of this emerging industry.
Reports indicate that the use of cryptocurrencies within Syria is minimal. Blockchain analytics company Chainalysis has noted that while Syrians have managed to access foreign crypto platforms, there is no evidence of widespread use within the country. Furthermore, concerns remain about the potential misuse of cryptocurrencies by extremist groups for fundraising.
Evasion of Sanctions?
Moreover, some skeptics suggest that this proposal could be a strategy to bypass sanctions, as it is associated with countries like Iran and North Korea. SCER, however, has made it clear that its focus is on economic recovery and innovation, not circumventing international laws. Bam emphasized:
“We would also like to stress that this Bitcoin proposal is NOT aimed at bypassing international sanctions. We believe sanctions should be urgently lifted through legal and political processes in line with international law.”
Bam further clarified that SCER operates independently from the government, relying on volunteers including Syrian engineers, academics, and entrepreneurs, to foster knowledge and dialogue on economic, technological, and monetary policies.
Future Projections
The proposal to legalize Bitcoin in Syria is of great significance. At the same time, it highlights the focus on economic recovery in a country in crisis while searching for alternative solutions. However, the obstacles encountered in practice will make the implementation of this innovative plan challenging. Still, this move could help alleviate the pressure on Syria’s national currency and may be seen as a bold step toward increasing participation in international financial interactions.
