Syria’s Bitcoin Bet: A New Dawn for a Struggling Economy?

Facing an unprecedented economic crisis, the Syrian government is considering legalizing Bitcoin and other cryptocurrencies, reports The Crypto Times. The Syrian Economics Research Center (SERC) suggests that digital currencies could stabilize the economy, curb inflation, and attract international investment.

Years of conflict and economic hardship have crippled Syria’s financial infrastructure. With the Syrian pound losing over 60% of its value and inflation eroding savings, traditional banking systems are no longer reliable. SERC proposes that adopting Bitcoin could offer a path to economic recovery. The plan includes introducing a digital version of the Syrian pound, backed by assets such as gold, U.S. dollars, or Bitcoin. This new digital currency aims to restore financial confidence, enable secure online transactions, and simplify remittances for Syrians abroad.

Syria also intends to leverage its untapped energy resources for Bitcoin mining, potentially creating a new revenue stream. However, significant challenges exist: sanctions that exclude Syria from the global financial system, inadequate infrastructure, and the risk of cryptocurrencies being misused. Despite these hurdles, SERC remains optimistic, emphasizing Bitcoin's decentralized nature as a potential tool to bypass sanctions and attract investment. Critics, however, warn of the difficulty in regulating Bitcoin, raising concerns about control and oversight.