The Syrian Center for Economic Research (SCER) has outlined an ambitious proposal to integrate Bitcoin into the Middle Eastern country's financial system.
On December 31, Bam, founder of the Arabic cryptocurrency channel Bitcoin 21, shared the SCER proposal on social media platform X, saying:
“Syrian Economic Research Center presents proposal to interim government to legalize Bitcoin and digitize lira in Syria.”
The proposal aims to legalize Bitcoin for a variety of purposes, including trading and mining. This suggests a digital version of the Syrian pound backed by assets such as gold, the US dollar, and Bitcoin.
SCER envisions leveraging blockchain to increase the stability of the country's currency and protect its citizens from ongoing economic challenges.
The plan also highlights the potential to harness untapped energy resources for environmentally sustainable Bitcoin mining, with the aim of modernizing the economy while maintaining equity.
Future challenges
SCER noted that this ambitious initiative faces major hurdles.
The group said Syria's recovery from a long period of conflict, combined with international sanctions and limited technological infrastructure, poses significant challenges that could hinder the introduction of emerging industries.
Furthermore, the adoption of cryptocurrencies in Syria remains minimal. Blockchain analysis firm Chainalysis noted that while Syrians have managed to access foreign crypto platforms, there is no evidence that they are widely used in the country.
Additionally, some factions are reported to be using virtual currency to raise funds, and there are deep-rooted concerns about its misuse by extremist groups.
Evading sanctions?
The proposal also raised concerns from skeptics that it could be a tactic to avoid sanctions, a strategy associated with countries such as Iran and North Korea.
SCER stressed that its intention is not to circumvent international law, but to focus on economic recovery and innovation.
Bam wrote:
“We also emphasize that[the Bitcoin proposal]is not aimed at circumventing international sanctions. We must urgently lift sanctions through legal and political procedures in accordance with international law. I believe there is.”
Bam said SCER operates independently of the government and relies on volunteers, including Syrian technologists, academics and entrepreneurs, to foster knowledge and dialogue on economic, technological and financial policy. That's what it means.
