- On a recent visit to Sri Lanka, crypto evangelist and billionaire Tim Draper met with President Ranil Wickremesinghe and Central Bank Governor Nandalal Weerasinghe to promote Bitcoin adoption.
- Weerasinghe rejected Draper’s proposal, saying that such a measure, instead of helping, could worsen the current crisis in the country.
- Weerasinghe noted that having its own currency is more than necessary for Sri Lanka’s monetary policy independence.
Digital assets and their tools have emerged in various parts of the world as a solution to economic or political problems, improving people’s quality of life, among other benefits.
However, it should be considered that there are no magic remedies or that all solutions are good for the problems of a nation or person. A phrase from the Austrian neurologist, father of psychoanalysis, Sigmund Freud, says that “an unsolicited opinion is an aggression”, and no one else is currently as clear as Tim Draper.
Bitcoin will not solve the economic crisis
The billionaire evangelist for digital assets recently faced a less than welcome reception, propose the widespread adoption of Bitcoin in a country in economic crisis.
This because the investor from Silicon Valley was recently in Sri Lanka to shoot an episode of his television show “Meet the Drapers” with local businessmen. In the same way, as part of his stay in the nation, the businessman took the opportunity to meet with President Ranil Wickremesinghe and promote the adoption of Bitcoin, said the specialized media Bloomberg.
In addition, the next day he appeared at the offices of the central bank of the country with the same intention, however, this was the moment in which the investor “ran into a wall”, since Governor Nandalal Weerasinghehe received it with a cold reception, in addition to not receiving the response he expected.
According to Bloomberg, Weerasinghe rejected Draper’s proposal, in addition to noting that the eventual adoption of the so-called “digital gold” would not be 100 percent as proposed by the acclaimed investor. In fact, he made his position on the crypto asset clear, pointing out that uNothing of this kind, instead of helping, could worsen the crisis that the country is currently going through, In addition, the current priority is to resolve the complex economic scenario that Sri Lanka is experiencing.
“I come to the Central Bank with decentralized currency”said Draper, only for Weerasinghe to bluntly reply, “We do not accept… 100% bitcoin adoption will never be a reality in Sri Lanka”.
In this regard, Draper reversed his plans, pointing out to the head of the central bank, feeling “a little worried about you” due to the current situation of Sri Lanka, as they have been severely affected by various cases of corruptionreason for which he returned to his initial proposal, adding that the adoption of Bitcoin may even be a solution, since the main digital currency could be a very good store of value, thanks to the fact that it is not subject to changes in government policies or the state entity.
“Have you seen Sri Lanka on the news? It is known as the capital of corruption. A country known for corruption will be able to keep perfect records with the adoption of Bitcoin.” Draper declared.
Crisis in Sri Lanka
It is important to be clear that many of the country’s problems, such as fuel and food shortages, led to a series of riots last year. Added to that, the president at that time fled the nation in debt and then resigned.
That caused Sri Lanka’s inflation rate stood at 54.2 percent in January, and last year the economy contracted 8%, the governor said.
Bitcoin and national currencies
The billionaire did not give up and kept trying to convince Weerasinghe of the efficacy of crypto assets. In fact, part of his arguments to demonstrate the effectiveness of Bitcoin was to cite El Salvador, a nation that became the first to adopt Bitcoin as legal tender along with the US dollar in September 2021.
“Does the administration have the guts to do it? What is the advantage of having your own currency?” Draper asked the governor of the Sri Lankan central bank.
Nevertheless, Weerasinghe pointed out that having its own currency is more than necessary for the independence of Sri Lanka’s monetary policy.as it ensures efficient inclusion and disbursement of electronic welfare payments, in addition to the fact that other technologies are capable of delivering financial services.
“We do not want to worsen the crisis with the introduction of BitcoinWeerasinghe concluded.
It should be noted that, although the measure in El Salvador was revolutionary at the time, it is currently facing a series of criticisms, after the fall in the price of Bitcoin since the end of 2021.
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