A Syrian non-governmental organization (NGO) has suggested a Bitcoin-backed financial system as a potential solution to the country’s ongoing economic struggles. The Syrian Center for Economic Research (SCER) has called for the creation of a Bitcoin-based banking system to help rebuild Syria’s shattered economy, protect citizens from inflation, and bring the country closer to economic stability.

The idea, known as the “Bitcoin Policy in Syria,” has been presented as a way to introduce a more reliable financial system, especially in light of Syria’s war-torn history and the difficulties faced due to inflation and currency devaluation. The proposal highlights the potential benefits of using Bitcoin to create a decentralized financial structure, offering Syrians an alternative to the failing national currency.

Bitcoin as a Financial Solution for Syria

Syria’s economy has been severely impacted by over a decade of civil war and international sanctions, leading to a loss of trust in the Syrian pound. With inflation at record levels and the local currency rapidly losing value, many Syrians have been left with little financial security. The SCER believes that Bitcoin, with its decentralized and global nature, could offer a way out of this crisis.

The NGO’s proposal suggests that the Syrian government adopt a Bitcoin-based banking system to help stabilize the economy. By integrating Bitcoin into the financial structure, the government could potentially reduce the risks associated with currency devaluation and offer citizens a more stable store of value. Bitcoin, unlike traditional currencies, is not controlled by any central authority, making it immune to inflation caused by poor fiscal policies.

Additionally, the SCER advocates for the legalization of Bitcoin mining in Syria. This would allow entrepreneurs and businesses to mine Bitcoin using the country’s energy resources, creating new opportunities for economic growth. The organization also suggests that the Syrian government back the national currency with Bitcoin or other assets, offering a more transparent and secure way to manage the country’s finances.

A Chance for Recovery Under New Leadership

This proposal comes at a time when Syria is under new leadership. In December 2024, the country’s long-time ruler Bashar al-Assad was ousted, and Ahmed al-Sharaa, a rebel leader, became the new de facto president. Al-Sharaa’s government is working to gain international recognition and rebuild Syria’s economy after years of devastation.

The SCER sees the adoption of a Bitcoin-based financial system as a way for the new leadership to prove its commitment to modernizing the economy and attracting foreign investment. The NGO believes that implementing such a system could help Syria recover faster by attracting global attention and building confidence in the country’s future.

However, the proposal is not without its challenges. The SCER acknowledges that Syria faces numerous obstacles, including the impact of international sanctions, technical difficulties in setting up a digital financial infrastructure, and the country’s large national debt. Despite these hurdles, the organization remains optimistic that Syria’s citizens will embrace new technologies like Bitcoin as part of the country’s recovery.

Overcoming Challenges

While the proposal for a Bitcoin-based financial system is bold, it also highlights the potential for cryptocurrencies to help countries in crisis. The SCER suggests that the government should create a regulatory framework that would allow Bitcoin to be traded, mined, and used as a store of value. The goal is to create an environment where both citizens and businesses can benefit from the opportunities presented by digital currencies.

The SCER also advocates for a policy that ensures Syrians have full control over their digital assets, allowing them to hold and manage their Bitcoin independently. This would give citizens the freedom to protect their wealth from inflation and government interference.

A Global Shift Toward Cryptocurrency

The idea of using Bitcoin as a solution for countries facing economic challenges is not unique to Syria. Around the world, cryptocurrencies are gaining traction as potential tools for financial inclusion and economic stability. In countries with unstable economies or weak currencies, Bitcoin and other cryptocurrencies offer a way to bypass traditional financial systems and give people more control over their finances.

For Syria, adopting Bitcoin could serve as a stepping stone toward rebuilding the country’s financial system and helping it reconnect with the global economy. By integrating cryptocurrency into the financial system, Syria could set itself on a path to recovery and attract international support.

The Road Ahead for Syria

The proposal by the SCER is just the beginning of what could be a transformative shift for Syria’s economy. While the road ahead is filled with challenges, including overcoming external sanctions and rebuilding the country’s infrastructure, the idea of using Bitcoin as a tool for economic recovery offers hope for a brighter future. As the world increasingly turns to digital currencies, Syria has an opportunity to modernize its financial system and move toward a more stable and secure economy.