• Billionaire investor Tim Draper recently visited Sri Lanka and attempted to convince the government and central bank to adopt Bitcoin.
• The Central Bank of Sri Lanka rejected his recommendation, citing worries that it could make the current crisis worse.
• Despite this, other countries have responded positively to Draper’s suggestion and have adopted Bitcoin as legal tender.
Billionaire Investor Visits Sri Lanka
Billionaire investor and venture capitalist Tim Draper recently visited Sri Lanka in order to shoot an episode of his „Meet the Drapers“ TV show with local entrepreneurs. During his visit, he attempted to convince the government and central bank of Sri Lanka to adopt Bitcoin.
Central Bank Rejects Suggestion
The Central Bank of Sri Lanka rejected Draper’s recommendation, citing worries that adoption of Bitcoin could make the current economic crisis worse. Governor Nandalal Weerasinghe stated “Adoption of 100% bitcoin won’t be a Sri Lanka reality ever”. He also noted that inflation rate was 54.2% in January 2021 and that last year, the economy contracted by 8%.
Other Countries Adopt Bitcoin
Despite the rejection from the Central Bank of Sri Lanka, other countries have responded positively to Draper’s suggestion and have adopted Bitcoin as legal tender alongside their national currency. For example, El Salvador became the first country in September 2021 to do so with US dollars.
Draper Worried About Corruption
In an attempt to sway Weerasinghe’s opinion on bitcoin adoption, Draper expressed concern about corruption in Sri Lankan media coverage: “A country known for corruption will be able to keep perfect records with adoption of bitcoin“. He also asked whether or not “the administration has the guts” for such a move.
Conclusion
While some countries are open-minded towards bitcoin adoption, it appears that for now at least, Sri Lankan government is not interested in taking this step due to fears it may worsen their already difficult economic situation