Can cryptocurrencies help revive the country’s devastated economy?

Here’s what the plan entails.

Syria’s plan to adopt Bitcoin

SERC proposes legalizing Bitcoin and other digital assets, arguing that this could protect the Syrian economy from severe challenges such as hyperinflation. The team believes that cryptocurrency could provide a much-needed lifeline to stability.

Introduction of centralized and decentralized banking

To modernize financial services in Syria, the proposal proposes establishing centralized and decentralized banking systems. This approach can improve access to banking services, especially for people in rural areas who often lack these basic services.

SERC also emphasizes building infrastructure for digital payments, e-commerce and remittances. A strong system for these activities would help Syria reconnect with global markets and modernize its economy.

Key recommendations of SERC’s BTC proposal

• One of the main ideas of the proposal is to create a digital currency backed by Bitcoin, gold and the US dollar. This mixed support could enhance confidence in the system and make the currency more stable.

• Second, Syria must create a well-regulated and transparent ecosystem for cryptocurrency activities, including trading and mining, to ensure security and fairness.

• Third, Syria must provide self-custody rights to its citizens that will allow them to control their digital assets, and promote financial independence.

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Challenges facing the SERC plan

SERC realizes that implementing these ideas will not be easy.

• Penalties: Syria faces strict international sanctions, making it difficult to access global markets and resources for cryptocurrency adoption.

• Weak infrastructure: The country’s financial and technological infrastructure needs major upgrades to support cryptocurrency.

• Post-war recovery: Years of war have left the Syrian economy in ruins, creating additional obstacles to the success of the proposal.

Syria’s plan to adopt Bitcoin is a bold and ambitious move. Despite the presence of many obstacles, this proposal reflects the desire to rebuild and adopt modern financial systems. If successful, it could mark the beginning of a transformative era for the country’s economy.