Syria is considering legalizing Bitcoin and digitizing the Syrian pound as an ambitious plan to stabilize its entire post-war economy and attract global investment.
According to the Syrian Center for Economic Research (SCER), the initiative aims to address economic instability, inflation, and financial exclusion from blockchain technology.
Years of war and economic mismanagement have devastated the Syrian economy, with the World Bank reporting a 60% economic contraction since 2010.
The Syrian pound has lost value drastically and inflation is eroding market confidence in the traditional banking system.
In response, the SCER outlined various strategies including legalizing Bitcoin in financial transactions, trade, and mining along with realizing the digitization of the Syrian pound via blockchain.
The use of cryptocurrencies has long been embraced by the Syrian people, especially the rebel group Hay’at Tahrir al-Sham (HTS) which uses Bitcoin in its financing.
However, the proposal requires strict oversight by central banks to ensure transparency, security and accountability in cryptocurrency operations.
However, critics warn of potential risks including instability in the crypto market and the potential for abuse of the technology.
