Syria is considering legalizing Bitcoin and digitizing the lira to save the economy!

Reports emerging today, Wednesday, indicate that the Syrian transitional government is studying a proposal aimed at legalizing Bitcoin and digitizing the Syrian lira as part of a comprehensive plan to stabilize the country's shattered economy and attract global investments. The plan was developed by the Syrian Center for Economic Studies, which views cryptocurrencies as a key tool to revitalize the Syrian economy following the collapse of the Assad regime.

The proposal suggests legalizing Bitcoin for trading and mining and using it in financial transactions, along with digitizing the Syrian lira through blockchain technology and stabilizing it by backing it with assets like gold, the US dollar, and Bitcoin. The strategy also includes harnessing untapped energy resources for cryptocurrency mining, with an emphasis on environmental sustainability and preventing monopolies.

The reports noted that the legalization of Bitcoin could open the door to international investments and partnerships and may facilitate remittances from Syrian expatriates, which are a lifeline for many families. Additionally, the decentralized nature of Bitcoin could help the country circumvent international sanctions, drawing inspiration from the experiences of countries like Russia and Iran in using cryptocurrencies to mitigate the effects of sanctions.

However, the reports also confirmed that this proposal faces significant challenges in Syria, starting from regulatory concerns to the need for building a digital economic infrastructure that requires massive investments and time. The complex geopolitical context could also pose additional obstacles, especially with regional players such as Russia, Iran, and Turkey potentially having an influential role in the reconstruction of Syria.

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