Syria Proposes Bitcoin to Stabilize Economy

Syria Proposes Bitcoin Legalization to Stabilize Economy and Attract Foreign Investment

The Syrian Center for Economic Research has put forth a proposal to legalize Bitcoin (BTC) in Syria, aiming to combat inflation, stabilize the country’s economy, and attract foreign investment. The plan, designed for the transitional government, calls for embracing digital currencies and digitizing the Syrian pound on the blockchain, backed by BTC, gold, and dollars.

Objectives and Implementation

The proposal aims to provide the Syrian currency with much-needed stability and encourage businesses to utilize the country’s energy resources for mining activities. It also seeks to legalize BTC mining and trade under a thorough regulatory framework, ensuring control to prevent monopolies and environmental damage.

Financial institutions, startups, and currency exchanges will be encouraged to integrate BTC into their offerings, streamlining remittances and creating opportunities for companies affected by years of volatility. The program emphasizes privacy and security as fundamental values, stressing the right of Syrian residents to retain complete self-custody of their digital assets.

Challenges and Considerations

Syria faces numerous challenges, including foreign sanctions, inadequate technical infrastructure, and debts incurred by the previous government. However, the decentralized structure of BTC may enable the country to bypass established banking institutions, a tactic used by other countries under strict sanctions, such as North Korea and Iran.

It’s essential to distinguish between the Syrian Center for Economic Research’s proposal and the contentious use of cryptocurrencies by terrorist groups like Hay’at Tahrir al-Sham. The center aims to establish a legitimate, transparent financial system under the supervision of the transitional government, benefiting the entire Syrian population.

International Precedents and Implications

Countries like El Salvador and the Central African Republic have attempted to legalize BTC with varying degrees of success. El Salvador has seen an increase in tourism and international investment, but also faces economic risks and debt issues.

Syria’s challenges are exacerbated by geopolitical complications, requiring substantial technology investments and international collaboration to succeed. If implemented, the strategy might establish Syria as a leader in the Middle East in the adoption of cryptocurrencies, but its success is uncertain due to long-standing political and financial obstacles.

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