Syria is at a crossroads after more than ten years of economic hardship. The country, struggling with a weak currency and political collapse, is looking at Bitcoin (BTC) as a bold solution.
The Syrian Center for Economic Research (SCER), a well-known independent think tank, has suggested making Bitcoin a legal national currency. This idea aims to revive Syria’s struggling economy. The proposal has sparked hope and discussions about how digital currencies could help troubled economies.
The Depth of the Syrian Crisis
Syria’s economic challenges are immense. Years of conflict have destroyed infrastructure, displaced millions, and stunted the nation’s industries. Once a symbol of economic stability, the Syrian pound is now nearly worthless.
Traditional recovery methods, like relying on foreign aid or loans, have faced significant challenges. International sanctions and distrust in Syria’s financial management have greatly restricted access to these resources.
The SCER’s Bitcoin policy bill emerges as a bold alternative in this context. The think tank believes Syria can bypass traditional financial hurdles and attract international investment by legalizing Bitcoin and creating a digital-first economy.
SCER’s Bitcoin Proposal: A Plan for Economic Recovery
The SCER’s proposal, shared on Telegram, outlined a roadmap for integrating Bitcoin into Syria’s financial system. The think tank proposes recognizing Bitcoin as a legal tender, allowing citizens to use it for transactions, savings, and investments.
This could attract businesses and help Syria use its low electricity costs for Bitcoin mining, creating jobs and income. The plan also aims to make sending money from abroad faster and cheaper.
It hopes to help online businesses trade globally without relying on the local currency. The proposal includes creating a digital Syrian pound backed by U.S. dollars. This Central Bank Digital Currency (CBDC) would operate on a blockchain, enhancing transparency and stability.
To ensure smooth integration, the SCER suggests setting up a comprehensive legal framework for Bitcoin that aligns with global standards and meets local needs.
Challenges and Roadblocks Ahead
The SCER’s proposal has potential, but there are challenges. Syria remains under heavy international sanctions, making it hard to connect with global financial systems. Although Bitcoin is decentralized, Syria’s lack of access to traditional financial networks could still be an issue.
The country also faces technical challenges, lacking the infrastructure and expertise to manage Bitcoin transactions. The SCER knows these gaps must be addressed for the plan to work.
Syria’s move echoes El Salvador’s adoption of Bitcoin as legal tender in 2021. While the Central American nation faced skepticism and regulatory pressure, it attracted significant international attention and investment. Syria’s situation is more complex due to ongoing geopolitical issues, but the success of El Salvador offers a glimpse of what could be possible.
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