Sri Lanka Rejects Tim Draper’s Bitcoin Plan to Combat Corruption
• Tim Draper, a venture capitalist investor, suggested using Bitcoin to combat corruption in Sri Lanka.
• Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, rejected the idea.
• Instead, he argued that adopting Bitcoin could worsen the economic situation of the nation.
Tim Draper’s Proposal
American venture capital investor Tim Draper recently visited Sri Lanka to shoot an episode of his TV show „Meet the Drapers.“ He proposed that by embracing Bitcoin, Sri Lanka could combat corruption and get on track again. He discussed this with President Ranil Wickremesinghe and Governor Nandalal Weerasinghe during his visit.
Central Bank’s Rejection
Governor of the Central Bank of Sri Lanka – Nandalal Weerasinghe – rejected Tim Draper’s idea to eliminate corruption in the country by embracing bitcoin. The banker argued that adopting the primary cryptocurrency could worsen the economic situation of the nation saying “the adoption of 100% bitcoin won’t be a Sri Lanka reality ever“.
Alternatives To Bitcoin
Weerasinghe believes that technologies different from Bitcoin could successfully distribute monetary services and boost financial inclusion across all areas in Sri Lanka. He also mentioned that these alternatives would help accelerate digital payments throughout home-based merchants and small businesses owners as well as drive internal remittances for migrant workers employed abroad.
Sri Lankan Economy And Corruption
The financial crisis reigning in Sri Lanka is due to high levels of debt which is estimated at around $64 billion USD or 80% of GDP according to official government estimates from 2019/2020 fiscal year end reports. This has led to allegations about corrupt practices by members throughout all branches within its government institutions.
Despite Tim Draper’s suggestion to adopt 100% crypto assets such as Bitcoin, it seems unlikely that will happen anytime soon given strong opposition from key members within its central banking system who see other alternatives as more viable options instead adopting a single cryptocurrency asset class…