Michaela Alvez
Syria has proposed legalizing Bitcoin and digitizing its currency as part of efforts to rebuild after the fall of the Assad government.
Proposed by the Syrian Center for Economic Research (SCER), the initiative aims to stabilize the nation’s war-torn economy, attract foreign investments, and address ongoing global financial challenges.
Syria’s proposed plan seeks to stabilize the national currency by digitizing the Syrian pound on the blockchain, backed by Bitcoin (BTC), gold, and US dollars. The proposal also encourages the use of the country’s energy resources for Bitcoin mining, while aiming to establish a legal framework for mining and trading BTC. This framework would include strict regulations to prevent monopolies and minimize environmental impact.
The proposal encourages financial institutions, startups, and currency exchanges to incorporate BTC into their services, aiming to streamline remittances and offer new opportunities for businesses affected by years of economic instability.
The program emphasizes privacy and security as core principles, ensuring that Syrian residents have the right to maintain full control over their digital assets.
Challenges for Syria
Syria faces obstacles like foreign sanctions, outdated infrastructure, and legacy government debts that could impede its plans. However, Bitcoin’s decentralized nature may allow the country to bypass traditional banking systems, a strategy previously adopted by nations like North Korea and Iran under sanctions.
It’s important to differentiate between the SCER’s plan to legalize Bitcoin and the controversial use of cryptocurrencies by groups such as Hay’at Tahrir al-Sham (HTS). HTS, once linked to al-Qaeda, has been accused of using digital currencies to finance its activities, sparking serious ethical and legal concerns.
The SCER seeks to create a transparent and legitimate financial system overseen by the transitional government, designed to serve the broader population rather than any particular group.
Several countries have explored or attempted to legalize Bitcoin and other cryptocurrencies in various ways, each with its own unique approach based on economic goals, political climates, and technological infrastructure.
Notably, El Salvador became the first country in the world to make BTC legal tender, meaning it could be used as an official currency alongside the U.S. dollar.
In April 2022, CAR became the second country to adopt Bitcoin as legal tender. The government cited Bitcoin’s decentralized nature as a way to increase economic independence, especially given the country’s ongoing instability and lack of access to traditional financial systems.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
