Syria
Economic Situation in Syria
Source: Freepik
The conflict in Syria has been ongoing for about fourteen years, causing a lot of pain and destruction for its people and economy. More than half of Syria’s population has been forced to leave their homes, either staying within the country or becoming refugees in neighboring countries.
The war has damaged buildings and roads, taken many lives, and led to a collapse of the economy. Syria’s GDP has cumulatively contracted by more than 50% since 2010, and Gross National Income per capita fell to $830 in 2024—well below the threshold for low-income countries.
From 2011 to 2016, Syria lost about $226 billion in total economic output, which is roughly four times what it made in 2010. The economic losses were far larger than the physical damage, making it harder for the country to recover over time.
In 2025 specifically, the World Bank projected Syria’s GDP would grow modestly by 1% after a 1.5% contraction in 2024, with sanctions easing creating upside potential but liquidity constraints and limited banking access still holding the economy back.
Syria’s healthcare system has been severely impacted by years of fighting, and the COVID-19 pandemic made things even worse. Rising fuel prices and expensive goods have continued to squeeze household budgets, while security and supply disruptions keep basic services unstable in many areas.
Agriculture also suffered, with repeated drought shocks and shortages damaging wheat production. In 2025, a historic drought cut wheat output by about 40% and created a shortfall of 2.73 million metric tons, increasing pressure on bread supply and household food security.
One of the most important 2025 realities for everyday commerce is that Syria has been operating under a severe liquidity crunch: physical banknotes are scarce, and local currency circulation is disrupted. This has pushed more people into informal channels and alternative payment rails (including dollar cash, stablecoins, and crypto intermediaries) simply to keep trade moving.
In 2025, international sanctions were progressively eased. The Office of Foreign Assets Control issued a Syria-focused general license in May 2025 aimed at enabling legitimate activity and investment, and the U.S. issued an executive action in late June 2025 terminating the Syria sanctions program effective July 1, 2025.
These steps reduced the “blanket restriction” effect that had previously blocked compliant global platforms from serving Syria, although sanctions screening and remaining restrictions still matter in practice.
In parallel, the European Union suspended parts of its sanctions package in early 2025 across areas including energy and banking, while keeping security-related measures in place.
Current State of Cryptocurrency Adoption in Syria
Source: Freepik
The Syrian Center for Economic Research (SCER) has proposed legalizing Bitcoin and creating a digital version of the Syrian pound. This is a bold initiative aimed at addressing the country’s economic struggles.
According to the World Bank, the economy has shrunk by over 60% since 2010. It could help control inflation, stabilize the currency, and attract foreign investments if implemented successfully. Given Syria’s current challenges with rising prices and a weakening currency, this proposal could bring significant changes to the country’s financial system.
This proposal aims to address Syria’s economic struggles by allowing Bitcoin trading, mining, and exchange under clear regulations that align with local and international standards. The plan also includes digitizing the Syrian pound by backing it with assets like gold and reserves.
This digital currency would be monitored by the central bank and other regulatory bodies to ensure stability and security. If successful, this move could help control inflation, strengthen the currency, and attract foreign investments, offering a new financial direction for Syria.
Beyond economic stability, this plan also aims to support Syrian entrepreneurs and innovators. The proposal also seeks to improve property rights and give people full control over their digital assets, while modernizing financial institutions to keep up with global trends
However, the proposal faces major challenges, such as a lack of advanced technology, limited public awareness, and geopolitical issues that have slowed Syria’s recovery. Using blockchain for banking and finance also comes with risks like regulation, security, and proving ownership of assets.
In areas with poor infrastructure, setting up legal systems to prevent conflicts is extremely difficult. The SCER has made it clear that the transitional government has not approved or considered this proposal, and they do not expect it to be implemented anytime soon.
They also emphasized that the plan is not meant to bypass international sanctions but rather to help stabilize the economy through legal means.
Interestingly, to aid humanitarian efforts in Syria, Chainanalysis reports that cryptocurrencies are used for donations to provide relief and support the local population.
Crypto Law in Syria
Source: Freepik
Currently, Syria lacks a formal regulatory framework specifically for cryptocurrencies. The transitional government has not yet prioritized digital asset legislation as it focuses on stabilization.
The legal environment is defined more by external factors than internal laws. The U.S. Congress is expected to repeal the Caesar sanctions by the end of 2025. This “financial liberation” allows Syrian businesses to engage with global financial entities without the immediate fear of penalties.
While there is no dedicated crypto regulator, the Commission for Combating Money Laundering and Financing of Terrorism (CCMLFT) and the Central Bank of Syria oversee financial flows. They enforce strict AML/CFT compliance, which now extends to the burgeoning digital asset sector.
Financial institutions re-entering Syria must implement robust Know Your Customer (KYC) procedures and report suspicious transactions immediately to the CCMLFT.
Factors Driving Crypto Adoption in Syria
Source: Freepik
Economic problems, limited access to banking, and the need for international transactions are pushing some Syrians to use digital currencies. Below are the main factors driving crypto adoption in Syria.
Inflation and Currency Devaluation
The Syrian pound has lost much of its value, making it difficult for people to save money. Cryptocurrencies like Bitcoin provide a way to store value without worrying about the instability of the Syrian Pound..
International Transactions and Remittances
Many Syrians rely on money sent by family members abroad. However, international sanctions and banking restrictions make it hard to receive funds. Cryptocurrency allows people to send and receive money quickly and with lower fees.
Growing Digital Awareness
More people in Syria are learning about digital currencies through social media and online platforms. As awareness grows, more individuals and businesses are exploring crypto as an option for payments and investments.
Peer-to-Peer Transactions
Since many global exchanges do not support Syria, people are using peer-to-peer (P2P) platforms to trade cryptocurrencies directly. This allows them to bypass banking restrictions and access digital assets.
Challenges to Cryptocurrency Adoption in Syria
Source: Freepik
Cryptocurrency is gaining popularity worldwide, but in Syria, it faces many obstacles. Economic struggles, government restrictions, and a lack of public awareness make it difficult for people to use digital currencies. Below are some of the key challenges to crypto adoption in Syria.
Government Restrictions
The Syrian government has strict rules on financial transactions, and cryptocurrency is not officially recognized. Many banks and financial institutions do not support crypto exchanges, making it hard for people to buy or sell digital currencies.
Financial Sanctions and Global Restrictions
Syria faces international sanctions, which limit financial transactions with other countries. Some global cryptocurrency platforms and exchanges may not be opened to Syrian users, making it harder to trade or invest in crypto.
Low Awareness and Education
Most people in Syria are not familiar with how cryptocurrency works. There is little education about digital currencies, and many people do not trust or understand how to use them safely.
Economic Instability
Syria’s economy has been weakened by war and inflation. Many people struggle to afford basic necessities, so investing in cryptocurrency is not a priority. The unstable value of the local currency also makes crypto transactions more complicated.
Cybersecurity Risks
Cryptocurrency transactions require secure online platforms, but cybercrime is a major concern. Without strong cybersecurity measures, people may be at risk of scams, hacking, and losing their money.
Crypto Usage in Different Sectors in Syria
Source: Freepik
Despite many challenges people and businesses are turning to crypto for various purposes, including online trade, remittances, and investment. Below are the key sectors where crypto is being used.
Remittances and Money Transfers
A large number of Syrians rely on money sent by family members living abroad. Due to international sanctions, traditional money transfer services can be slow and expensive. Cryptocurrency allows for faster and cheaper cross-border transactions.
Investment and Trading
People in Syria are using crypto as an investment option to protect their money from inflation. Some trade cryptocurrencies to earn profits, while others hold digital assets as a way to store value.
NGOs and Humanitarian Aid
Some international organizations use cryptocurrency to send aid to people in need. Since banking restrictions make it hard to transfer money, crypto allows for direct transactions without middlemen.
Online Business and Freelancing
Many Syrians work online as freelancers, offering services like graphic design, programming, and writing. Since international payments are difficult due to banking restrictions, many freelancers receive payments in cryptocurrency.
Community-Led Fundraising
Some Syrian campaigns and communities use cryptocurrency to collect donations and raise funds for local projects, such as rebuilding homes, supporting families in need, covering medical expenses, and even supporting the war.
Some Syrians have managed to create accounts on foreign platforms, and some HTS fighters were tracked using cryptocurrency to raise money to support the war. Crypto enables faster transactions and avoids high fees associated with traditional banking systems.
Conclusion
Cryptocurrency is slowly making its way into Syria, offering new opportunities for individuals and businesses despite economic and political challenges. It provides an alternative for financial transactions, investment, and even humanitarian aid.
However, its widespread adoption depends on better infrastructure, clearer regulations, and increased public awareness. While the SCER’s proposal presents an ambitious vision, it remains uncertain if or when it will become a reality.
For now, crypto continues to grow as a financial tool for Syrians looking for stability in uncertain times.
