The Syrian Center for Economic Research is exploring plans to legalize bitcoin (BTC) and other cryptocurrencies to promote economic recovery and stability and attract global investments. The move came amid years of war-torn challenges. The proposal could mark a significant moment in the nation’s approach to rebuilding its economy.
According to an official report, the proposal aimed to position BTC as a vital support system for Syria’s struggling citizens and deteriorating financial infrastructure. It also outlined a regulatory framework to legitimize Bitcoin’s use in trading, mining, and various financial transactions.
Syria to Give Full-Custody of Crypto Assets to Citizens
The report noted that Syria plans to build a digital economy and a centralized and decentralized banking infrastructure with branches over various cities and villages.
The proposal further stated that it would empower citizens to maintain full custody of their digital assets. It prioritizes privacy and security, assuring users the freedom to transact without interference while ensuring compliance with local and international regulations.
The Syrian government plans to allow entrepreneurs of the country’s energy resources to mine bitcoin and other digital assets, with governmental facilitation granting them the freedom to expand while restricting monopolies and any adverse societal and environmental externalities.
Growing Adoption of Bitcoin
While Syria still focuses on legalizing BTC, its neighboring countries, like Türiye and Lebanon, have embraced crypto to fight their economic breakdown, paving the way for potential regional partnerships.
BTC adoption has expanded globally in recent years, with retail investors, institutional investors, states, and countries making Bitcoin a preferred asset reserve. For instance, the House of Representatives of Pennsylvania, the fifth-most popular state in the United States, proposed adding BTC to the state’s balance sheet as a reserve.
In line with countries adding bitcoin to their reserves, the special administrative region of China, Hong Kong, has shown interest in adopting BTC this year to help boost the country’s acceptance and development.
Although more than 50 countries globally have banned Cryptocurrencies, Hong Kong’s lawmaker Wu Jiezhuang urged the government to consider including Bitcoin in its sovereign wealth funds to support its policies and stabilize its economy’s fiscal reserve. Additionally, he noted that the region should use foreign exchange funds to purchase and hold crypto assets in the long term.
