The Syrian Center for Economic Research (SCER) has outlined an ambitious proposal to integrate Bitcoin into the Middle East’s financial system.
On December 31, Bam, the founder of the Arabic crypto channel Bitcoin 21, shared the SCER’s proposal on social media platform to report:
“The Syrian Center for Economic Research publishes a proposal for the transitional government to legislate Bitcoin in Syria and digitize the Lira.”
The proposal aims to legitimize Bitcoin for various purposes, including trading and mining. It suggests a digital version of the Syrian pound, backed by assets such as gold, US dollars and Bitcoin.
By using blockchain, the SCER aims to ensure greater stability for the national currency and protection of citizens against ongoing economic challenges.
The plan also highlights the potential of harnessing untapped energy resources for environmentally sustainable Bitcoin mining, with the aim of modernizing the economy while maintaining fairness.
Challenges ahead
The SCER noted that this ambitious initiative faces significant hurdles.
According to the group, Syria’s recovery from a protracted conflict, coupled with international sanctions and limited technological infrastructure, poses significant challenges that could hinder the adoption of the emerging industry.
Furthermore, cryptocurrency adoption in Syria remains minimal. Blockchain analytics company Chainalysis noted that while Syrians have managed to access foreign crypto platforms, there is no evidence of widespread use in the country.
Additionally, concerns about abuse by extremist groups remain as some factions have reportedly used cryptocurrencies for fundraising.
Sanctions evasion?
The proposal also raised concerns among skeptics who suggested it could be a tactic to avoid sanctions, a strategy associated with countries such as Iran and North Korea.
The SCER emphasized that its intentions are focused on economic recovery and innovation, and not on circumventing international laws.
Bam wrote:
“We also emphasize that [the Bitcoin proposal] is NOT intended to circumvent international sanctions. We believe that sanctions should be URGENTLY lifted through legal and political processes, in accordance with international law.”
According to Bam, the SCER operates independently of the government and relies on volunteers, including Syrian engineers, academics and entrepreneurs, to promote knowledge and dialogue on economics, technology and monetary policy.
