Tim Draper, an American billionaire, recently proposed the concept of Bitcoin adoption as a legal tender when he visited Sri Lanka. As per Draper, Bitcoin adoption can help confront the corruption due to which the island country is experiencing hyperinflation.
While conversing with native entrepreneurs regarding crypto adoption, Draper met Ranil Wickremesinghe (the president of Sri Lanka) in this respect.
Sri Lanka Denies Tim Draper’s Suggestion of Bitcoin Adoption to Deal with Corruption
The entrepreneur went to the central bank of the country to propose the same idea. Nonetheless, Nandalal Weersinghe (the governor of the bank) – who is operating to provide solutions to the financial crisis of the country – confronted the idea.
The governor reacted to the concept of adopting Bitcoin in Sri Lankan jurisdiction by saying that it cannot be translated into a hundred percent reality.
Weersinghe mentioned that embracing the primary crypto token would worsen the country’s ongoing crisis. Hence, he added, they are currently making decisions on that route at present.
The official disclosed that the rest of the technologies could provide an effective substitute in financial services for the promotion of social inclusion as well as rapidly distribute funds among those who require them.
The entrepreneur, during his meeting, categorized the country of Sri Lanka as corrupt and suggested that crypto could offer a solution to cope with the current situation.
Draper is of the view that the island nation has a specialty in mineral resources. He revealed that Sri Lank could have dealt with its corruption-related issues by maintaining records via the adoption of the primary crypto token.
In the previous year, the country went through the worst economic turmoil in its entire history. The respective crisis led to shortages in fuel and food supplies throughout the country.
As a consequence, these difficulties stimulated protests throughout the country. Eventually, Gotabaya Rajapaksa (the former president of Sri Lanka) was compelled to leave the country. After that, he declared his resignation.
Financial Turmoil Pushes Countries to Bitcoin
At present, the country is going through talks with several private creditors belonging to India, China, and Japan to reorganize its debt while keeping in view the strategy of the IMF. The nation is reorganizing the debt payments of nearly $51B out of approximately $28B.
The respective debt is required to be recompensed by 2027. In the words of Draper, the country can deal with the ongoing financial catastrophe by accepting Bitcoin as its legal tender.
According to Draper, this could assist in economic development and in enhancing financial inclusion. Countries such as Venezuela, Turkey, and Zimbabwe additionally witness current financial turmoil.
They are going through hyperinflation. As a consequence of this, the citizens living in these nations have increasingly been moving toward crypto assets for storing their value.
As Draper asserted, the top crypto asset is classified among the prominent instruments that can assist humanity in overwhelming financial issues. He considers that investors should keep on pursuing the opportunities through directly investing in Bitcoin as well as its core blockchain technology.
Formerly in November, the value of Bitcoin declined due to the crash of the crypto exchange FTX. After that, the chief crypto token has been seeing a recovery in terms of price.
This has been partially credited to the institutional adoption of Bitcoin on a broad level. Tim Draper is bullish on Bitcoin and thinks that it will reach the $250,000 level this year.
