The Syrian Center for Economic Research (SCER) has put forward a groundbreaking proposal to incorporate Bitcoin into the financial system of Syria. This proposal, shared by Bam, the founder of the Arabic crypto channel Bitcoin 21, aims to legalize Bitcoin for trading and mining purposes, along with introducing a digital version of the Syrian pound backed by assets like gold, US dollars, and Bitcoin. The goal is to bring stability to the national currency and provide protection to citizens amidst economic challenges through the use of blockchain technology.
One of the key aspects of the proposal is the potential for environmentally sustainable Bitcoin mining by tapping into untapped energy resources in Syria. This move not only aims to modernize the economy but also emphasizes fairness in the process. However, the SCER acknowledges that there are significant challenges ahead. The country’s recovery from conflict, international sanctions, and limited technological infrastructure are all hurdles that could hinder the adoption of Bitcoin in Syria.
Despite the potential benefits, the adoption of cryptocurrencies in Syria remains limited. Chainalysis, a blockchain analytics firm, has highlighted that while some Syrians have accessed foreign crypto platforms, widespread adoption within the country is yet to be seen. There are also concerns about the potential misuse of cryptocurrencies by extremist groups for fundraising purposes.
Furthermore, the proposal has raised concerns among skeptics who fear that it could be used as a means to evade international sanctions, similar to tactics employed by countries like Iran and North Korea. However, the SCER has clarified that their focus is on economic recovery and innovation, rather than circumventing laws. Bam emphasized the organization’s commitment to adhering to international law and emphasized the need for sanctions to be lifted through legal and political processes.
It is important to note that the SCER operates independently of the government and relies on volunteers, including Syrian engineers, academics, and entrepreneurs, to promote discussions on economics, technology, and monetary policy. The proposal represents a bold step towards integrating Bitcoin into Syria’s financial system, but it will require careful consideration and strategic planning to overcome the challenges and ensure successful implementation.