Can Crypto Help Revive the Country’s Shattered Economy?

The Syrian economy has been almost completely shattered by the ongoing multi-sided civil war in the country. The country’s economic scenario worsened when the Assad regime, led by Bashar al-Assad, was ousted from the throne. Last month, a new transitional government took charge in the country. There were rumours that the primary focus of the new regime would be to revive the embattled economy. In line with those rumours, the Syrian Economics Research Center has submitted a proposal seeking the integration of Bitcoin into the country’s financial system. Here is what you should know about the development. 

Syria’s Plan to Adopt Bitcoin 

The Syrian Economics Research Center’s proposal primarily demands the legalisation of Bitcoin and other digital assets. The team believes that integrating Bitcoin into the economy of Syria would help the country escape from economic threats like inflation. 

Syria’s Vision for a Digital Economy 

Notably, the proposal appeals for the creation of centralised and decentralised banking systems, highlighting the potential of the plan to provide better services to people, especially villagers. 

It also calls for the creation of infrastructure to facilitate e-commerce, remittances and digital transactions. 

Key Recommendations of the SERC’s BTC Proposal 

• The primary recommendation is that Syria should digitalise its currency. The proposal suggests creating a digital currency backed by Bitcoin, Gold and the US dollar. 

• Secondly, Syria should establish a well regulated, transparent, ecosystem for crypto activities, including trading and mining. 

• Thirdly, Syria should provide self-custody rights to its citizens. 

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Challenges in Implementing the SERC’s Plan 

The SERC acknowledges that there are many serious challenges in implementing their proposal in a country like Syria. 

• Mainly, the country is facing some serious economic sanctions. That means currently there are serious limitations for it to access the possibilities of the global open market. 

• Secondly, the country is not in a comfortable economic position to establish a proper infrastructure for crypto adoption. Creating a suitable infrastructure is an unavoidable prerequisite for the success of the SERC’s plan. 

• Thirdly, the country has not yet fully recovered from the disaster the conflict has inflicted on its economy.  

In conclusion, Syria’s proposal for Bitcoin adoption marks a bold step in modernising its economy. While challenges remain, the country’s resilience and the global shift towards crypto may pave the way for a transformative financial future.