Syria is considering legalizing Bitcoin as part of an ambitious plan for financial recovery as it aims to rebuild its war-torn economy.
The proposal, spearheaded by the Syrian Center for Economic Research, calls on the transitional government to embrace Bitcoin and other digital assets to combat inflation, stabilize the economy and attract global investment.
The plan comes at a crucial time for Syria, which is struggling to recover from decades of war and the collapse of the Assad regime. Bitcoin is being offered as a lifeline for both citizens and the country’s crumbling financial system at a time when inflation is soaring and trust in traditional banking systems is eroding.
The framework proposes legalizing Bitcoin for trading, mining, and financial transactions, while introducing regulations to ensure accountability and security.
One of the most transformative aspects of the proposal involves the creation of a digital Syrian pound. The digital currency, backed by gold, the US dollar and Bitcoin, aims to stabilize the country’s weak currency and restore confidence in its financial system.
The proposal, which states that “the central bank will supervise the process and ensure that it operates in a secure and accountable framework,” emphasizes the transparency of the application.
Syria also plans to use unused energy resources to support Bitcoin mining. Entrepreneurs will be allowed to mine Bitcoin under strict government oversight to prevent monopolies and minimize environmental and social impacts.
The plan envisions a future where financial institutions, startups and currency exchanges integrate Bitcoin into their operations. This integration could facilitate remittances for millions of Syrians who rely on funds from abroad and provide much-needed support to businesses damaged by years of instability.
While Bitcoin already has some popularity in Syria, its use has not always been benign. Groups such as Hay'at Tahrir al-Sham (HTS), a former branch of al-Qaeda, have reportedly used cryptocurrencies to fund their operations despite international sanctions.
*This is not investment advice.
