The Digital Lira Initiative: Syria's Strategy to Combat Inflation and Drive Economic Growth

This paper aims to explore the potential implementation of a digital currency, specifically a "Digital Lira," as a strategic initiative by Syria to combat inflation and stimulate economic growth. The existing literature on digital currencies and their applications in developing economies, particularly those facing economic instability and conflict, will be reviewed to provide a contextual framework for understanding the potential benefits and challenges of introducing a Digital Lira in Syria. It will further analyze the current economic situation in Syria, including the factors contributing to inflation, the limitations of traditional monetary policies, and the need for innovative solutions to address the country's economic woes. This research will utilize economic modeling to simulate the potential impact of the Digital Lira on key macroeconomic indicators, such as inflation, GDP growth, and financial inclusion. The study will also explore the technical and regulatory aspects of implementing a Digital Lira, including the choice of technology platform, the design of the currency's governance structure, and the measures needed to ensure cybersecurity and prevent illicit financial activities. The potential implications of the Digital Lira on domestic demand, investment, international trade, remittances, the unbanked population, and the banking sector will be highlighted.