The Bitcoin legalization proposal aims to reshape Syria's financial future.

Syria, a country still recovering from the fall of the Assad government, is preparing for a radical financial reform: legalization or Bitcoin (Bitcoin).

To combat inflation, stabilize the country's economy, and attract foreign investment, the Syrian Center for Economic Research put forward a bold plan calling on the transitional government to adopt Bitcoin And other digital currencies.

The Syrian Center for Economic Research publishes a proposal for the transitional government to legislate #Bitcoin in Syria and digitize the Lira 👏 pic.twitter.com/dEm8gwfzdP

— Bam ⚡️باسم (@bamskki) December 31, 2024

After decades of war and economic devastation, the country now faces the daunting task of reconstruction.

To give the currency much-needed stability, the plan calls for digitizing the Syrian pound on blockchain technology and supporting it with BitcoinAnd gold and the dollar. Besides encouraging businessmen to use Syrian energy resources in mining activities, it also aims to legalize BTC mining and trading under a comprehensive regulatory framework, ensuring strict oversight to prevent monopolies and environmental damage.

To simplify remittances and create opportunities for businesses affected by years of volatility, financial institutions, startups and currency exchanges will be encouraged to integrate BTC into their offerings. The program highlights privacy and security as core values ​​and emphasizes the right of Syrian residents to retain full self-protection of their digital assets.

Despite these lofty goals, the nation faces numerous challenges, including foreign sanctions, inadequate technical infrastructure, and debt incurred by the previous government. Decentralized structure Bitcoin It may enable Syria to evade existing banking institutions, a tactic used by other countries subject to strict sanctions, such as North Korea and Iran.

It is important to distinguish between the Syrian Center for Economic Research's proposal to legalize Bitcoin and the controversial use of cryptocurrencies by terrorist groups such as Hay'at Tahrir al-Sham. Hay'at Tahrir al-Sham, formerly affiliated with al-Qaeda, has reportedly used cryptocurrencies to fund its operations, raising major ethical and legal concerns.

In contrast, the Syrian Center for Economic Research aims to establish a legitimate and transparent financial system under the supervision of the transitional government, aiming to benefit the entire Syrian people and not specific factions.

With varying degrees of success, countries such as El Salvador The Central African Republic tried to legalize BTC. El Salvador has been criticized for economic risks and debt issues despite seeing an increase in tourism and some international investment.

On the other hand, the difficulties facing Syria are exacerbated by geopolitical complexities, which require significant technological investments and international cooperation to achieve success. This strategy could position Syria as a leading country in the Middle East in adopting cryptocurrencies if implemented, but it is doubtful that it will succeed, given the long-term political and financial obstacles.