Syria Considers Legalizing Bitcoin to Rebuild Economy and Ensure Market Freedom

The Syrian Center for Economic Research (SCER), a prominent think tank, has proposed a policy bill urging the adoption of Bitcoin as legal tender to help revive Syria’s struggling economy. The move comes as the nation grapples with over a decade of economic collapse, marked by a 60% contraction since 2010 and a crashing Syrian pound, as reported by the World Bank.

Building a Digital Economy

The SCER’s proposal, shared via its Telegram channel, emphasizes the potential of Bitcoin and blockchain technologies in rebuilding Syria’s economy. Key aspects include:

• Facilitating E-commerce and Remittances: Utilizing Bitcoin and other digital assets to streamline online commerce and cross-border payments.
• Regulatory Framework: Establishing comprehensive regulations for Bitcoin trading, buying, selling, and mining, aligned with international standards.
• Digital Syrian Pound: Introducing a central bank digital currency (CBDC) backed by hard assets like the US dollar and minted on blockchain technology.

Mining Potential and Economic Opportunity

Syria’s extremely low electricity costs—second only to Venezuela at $0.003 per kilowatt-hour—position it as a potential Bitcoin mining hub. The proposal encourages entrepreneurial investment in Bitcoin mining while safeguarding against monopolies and negative societal and environmental impacts.

Principles of Economic Revival

The SCER’s proposal advocates for conservative free-market policies, avoiding inflationary monetary strategies and dependence on high-interest loans. It also calls for integrating Bitcoin into the operations of banks, startups, and currency exchanges to attract foreign investments.

Challenges Ahead

Despite its promise, the plan acknowledges significant hurdles, including:

• External Sanctions: International restrictions could complicate efforts to attract investments and foster trade.
• Technical Issues: Implementing blockchain infrastructure and ensuring widespread adoption could present logistical challenges.
• Existing Debts: Syria’s financial obligations from the previous regime may limit its fiscal flexibility.

If successful, this initiative could position Syria as a pioneer in the Middle East for Bitcoin adoption, leveraging innovative financial technologies to rebuild its economy and ensure market freedom.

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