Syria Proposes Bitcoin Legislation to Stabilize Syria’s Economy Amid Challenges
The Syrian Center for Economic Research (SCER) has unveiled a bold proposal to incorporate Bitcoin into the nation’s financial system.
On December 31, Bam, the founder of the Arabic crypto channel Bitcoin 21, shared the SCER’s proposal on the social media platform X, stating:
“The Syrian Center for Economic Research publishes a proposal for the transitional government to legislate Bitcoin in Syria and digitize the Lira.”
The proposal outlines plans to legalize Bitcoin for activities such as trading and mining, while also introducing a digital version of the Syrian pound backed by assets like gold, US dollars, and Bitcoin.
By utilizing blockchain technology, the SCER aims to stabilize the national currency and provide citizens with protection against ongoing economic difficulties.
The initiative also explores the potential of using untapped energy resources to enable environmentally sustainable Bitcoin mining, striving to modernize the economy while ensuring fairness.
Challenges and Sanction Evasion Concerns
The SCER acknowledged that significant obstacles stand in the way of implementing this ambitious plan. Syria’s recovery from years of conflict, combined with international sanctions and limited technological infrastructure, poses major challenges to adopting this emerging industry.
Furthermore, crypto adoption in Syria remains low. Blockchain analytics firm Chainalysis observed that while Syrians have accessed foreign crypto platforms, there is no evidence of widespread local use.
Concerns also linger about potential misuse, with reports indicating that extremist groups have used cryptocurrencies for fundraising.
The proposal has sparked skepticism among critics who suggest it could be a strategy to circumvent international sanctions on Syria, a tactic previously associated with countries like Iran and North Korea.
The SCER emphasized that the initiative is focused on economic recovery and innovation rather than evading international laws.
Bam commented: “We also emphasize that [the Bitcoin proposal] is NOT meant to circumvent international sanctions. We believe that sanctions should be lifted URGENTLY through legal and political processes in accordance with international law.”
According to Bam, the SCER is an independent organization relying on volunteers in Syria, including Syrian engineers, academics, and entrepreneurs, to promote knowledge and dialogue on economics, technology, and monetary policy.
