After years of conflict and economic devastation, Syria faces the monumental challenge of rebuilding.

The proposed plan aims to enhance the stability of the currency by digitizing the Syrian pound on the blockchain and supporting it with BTC, gold, and U.S. dollars. It also seeks to legalize BTC mining and trading within a comprehensive regulatory framework, promoting the use of Syria’s energy resources for mining operations while ensuring strict oversight to prevent monopolies and protect the environment.

To facilitate remittances and create opportunities for businesses affected by years of economic volatility, financial institutions, startups, and currency exchanges will be urged to incorporate BTC into their services. The initiative prioritizes privacy and security as essential principles, emphasizing the right of Syrian citizens to maintain full self-custody of their digital assets.

Despite these ambitious goals, the nation faces numerous obstacles, including foreign sanctions, inadequate technological infrastructure, and the debts incurred by the previous administration. The decentralized nature of BTC may offer Syria a way to bypass traditional banking systems, a strategy that has been adopted by other sanctioned nations like North Korea and Iran.

It is essential to differentiate the Syrian Center for Economic Research’s initiative to legalize BTC from the controversial use of cryptocurrencies by terrorist organizations such as Hay’at Tahrir al-Sham (HTS). Previously linked to al-Qa’ida, HTS has reportedly used digital currencies to finance its activities, raising significant ethical and legal issues.

In contrast, the Syrian Center for Economic Research strives to create a legitimate and transparent financial framework under the oversight of the transitional government, aimed at benefiting the entire Syrian populace rather than specific factions.

Countries like El Salvador and the Central African Republic have made attempts to legalize BTC with varying levels of success. El Salvador has faced criticism for the economic risks and debt challenges it encountered, even as it experienced a surge in tourism and some international investment.

Syria’s situation is complicated further by geopolitical issues, requiring significant technological investments and international cooperation to achieve success. If implemented, this strategy could position Syria as a leader in cryptocurrency adoption in the Middle East, but given the enduring political and financial challenges, its success remains uncertain.