A Syrian economic group has launched a legal framework for regulating cryptocurrencies as part of a push to revive the country's war-ravaged economy.

The non-governmental Syrian Centre for Economic Research (SCER) proposed a plan that includes the potential issuance of a new "digital pound", which would be supported by the Central Bank of Syria (CBS), the group stated.

The online group said the proposal "brings together engineers, academics, and entrepreneurs," aiming to learn, spread knowledge, and enhance communication and open discussion with support by  US-based Saifedean Ammous, according to the group's administrator.

If accepted by the reformed CBS, the new crypto-backed Syrian pound could revive the country's economy, a change from the former regime of Bashar al-Assad, who was heavily reliant upon exporting a class-B drug called Captagon to keep the country ticking over before their departure.

The new government led by Ahmed al-Sharaa has promised to destroy all remnants of the narco-empire of the former regime, but has not yet formally acknowledged the crypto project led by Syrian nationals. 

The group said the new cryptocurrency could be backed by the US dollar, gold, and Bitcoin but had not yet finalised the proposal despite being in discussions with several groups.

Blockchain technology, a decentralised system for securely recording transactions, is the foundation for digital currencies and has broad applications beyond the cryptocurrency domain.

The SCER plans also see Syria as a potential new site for cryptomining owing to the low cost of energy and the weak state of the country's currency in 2025.

Earlier in December, the group announced that the proposal could “avoid inflationary monetary policies and excessive reliance on usurious loans” while noting “permitting institutions, banks, currency exchange offices” with new badly needed funding streams. 

The SCER acknowledged that there are many steps ahead to achieve the ultimate goal of reviving the Syrian pound, with sanctions continuing to be levied on the country by both the US and EU despite meetings in recent weeks between Western officials and the Islamist-led government. 

Following the announcement by the group, crypto enthusiasts on social media jumped on the project with the potential to receive significant support from international backers if launched, with several websites misrepresenting the news as a new government-led initiative.

The group later posted a note on January 5 reiterating that it was not linked to the Syrian administration: "The transitional government has neither approved nor considered this proposal, and we do not expect them to do so anytime soon. They likely have more pressing issues to address at this time."