Syria Considers Legalizing Bitcoin to Stabilize Economy

Highlights:

• SCER’s plan aims to adopt Bitcoin to combat inflation and attract global investments.
• Syrian Bitcoin policy includes regulations for mining, trading, and using untapped energy.
• Concerns persist over groups like HTS using Bitcoin despite SCER’s regulatory efforts.

The Syrian Center for Economic Research (SCER), a non-governmental think-tank, has proposed a plan for the transitional government. It suggests adopting Bitcoin and other digital assets. The goal is to combat inflation, stabilize the economy, and attract global investments.

The World Bank reports that Syria’s economy has shrunk by over 60% since 2010. The Syrian pound has also experienced a significant crash. The country is gradually recovering after the collapse of the Assad regime. Syria is exploring innovative rebuilding strategies to promote market freedom.

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

Syrian Bitcoin Policy Proposal

The proposal includes creating regulations for Bitcoin buying, selling, trading, and mining. The proposal highlights using Syria’s untapped energy resources for Bitcoin mining. The government will allow entrepreneurs to mine Bitcoin but will monitor operations to prevent monopolies and address concerns.

The proposal suggests that banks, startups, and currency exchanges adopt Bitcoin. This could simplify remittances for millions of Syrians. Many rely on funds from abroad. It could also support businesses struggling after years of instability.

The proposal emphasizes that citizens should retain full control over their digital assets. Privacy and security are top priorities. Users will be able to transact freely, without fear of interference, while following local and international laws.

It also suggests digitizing the Syrian pound (CBDC), which would be backed by assets like dollars and placed on the blockchain. Syria, with the second-lowest electricity price in the world at $0.003 per kWh, could become an ideal location for Bitcoin mining.

SCER stated:

“Allowing entrepreneurs to use the country’s energy resources to mine Bitcoin and digital assets, with governmental facilitation granting them the freedom to innovate and expand while restricting monopolies and any adverse societal and environmental externalists.”

Cryptocurrencies have become popular in Syria, though not always for good reasons. Groups like Hay’at Tahrir al-Sham (HTS) have used Bitcoin to fund their activities. The SCER’s plan aims to regulate crypto, but there are concerns such groups could still misuse it. In contrast, The think tank aims to create a transparent financial system. It will be supervised by the transitional government to benefit all Syrians, not just specific groups.

Syria’s Growing Interest in Bitcoin Mirrors Global Trends for Financial Stabilization

Syria’s interest in Bitcoin is part of a global trend to explore cryptocurrency as a financial stabilizer. As Crypto2Community reported, Switzerland is considering adding Bitcoin to its national reserves to drive financial innovation. A Russian lawmaker suggested creating a Bitcoin reserve to boost financial stability amid sanctions. These global examples could offer valuable insights for Syria as it plans its crypto path.

In the U.S., Senator Cynthia Lummis supports a Bitcoin reserve bill under Treasury management. Politicians in Brazil and Poland also showed interest in creating Bitcoin reserves. Hong Kong’s Wu Jiexhuang proposed including Bitcoin in national reserves for financial security. Moreover, former German Finance Minister Christian Lindner urged the ECB and Bundesbank to include Bitcoin in reserves.