Sri Lanka rejects billionaire Tim Draper’s Bitcoin pitch to tackle corruption

3 February 2023 08:22 pm - 9 - {{hitsCtrl.values.hits}}

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Tim Draper, a prominent cryptocurrency advocate, and billionaire investor faced unexpected resistance during his recent visit to Sri Lanka. The Silicon Valley entrepreneur was in the country to film an episode of his TV show “Meet the Drapers” and to promote the widespread adoption of Bitcoin.

However, his proposal was not well received in a 30-minute meeting by the country’s President Ranil Wickremesinghe and Governor Nandalal Weerasinghe, who is currently focused on stabilizing the nation’s financial situation, according to a report by Bloomberg on February 3.

Despite Draper’s confident pitch, “I come to the central bank with decentralized currency,” dressed in a Bitcoin tie and armed with the concept of decentralized currency, his ideas were not embraced during a meeting at the central bank.

This was a colder reception for Draper than he has had elsewhere. For example, the Pacific island nation of Palau made him the first person to participate in its digital-residency program.

During the meeting with Governor Weerasinghe, Draper persisted in his efforts to promote cryptocurrency adoption. He posed the question of whether the administration had the bravery to take on such a project and emphasized the benefits of having a proprietary currency. Draper expressed his concerns for the country and highlighted the current financial crisis as a unique opportunity for Sri Lanka. He argued that the adoption of Bitcoin could help alleviate corruption by maintaining an accurate record of transactions.

However, Governor Weerasinghe pointed out that other technologies can effectively provide financial services and disburse welfare payments to underserved populations. He also noted that a country without its own currency would lack monetary independence and that introducing Bitcoin during a time of crisis could potentially worsen the situation.

Riots broke out in Sri Lanka last year due to fuel and food shortages, prompting the then-president to quit and eventually escape the country. The debt-ridden country is now in debt-restructuring negotiations with foreign creditors in the hopes that the International Monetary Fund would devise a rescue plan. The governor reported that inflation was 54.2%, and economic growth had dropped to 8% in the previous year.

Cryptocurrency proponents may see such as a utopia for widespread Bitcoin use. One of the most common applications for cryptocurrencies is as a stable store of value that is not subject to shifts in the central bank or government policies.

Draper even brought up El Salvador, which has officially recognized Bitcoin as legal tender. However, examples like as El Salvador’s narrowly avoided default only last month may serve more as a warning than anything else.

However, back in 2021 Sri Lanka deemed crypto solutions a necessity, forming a team to oversee shift.

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Comments - 9

Punchi Friday, 03 February 2023 08:38 PM

We can’t manage money, there is no hope of us managing bitcoin, although the knowledge of this can be found in our scriptures

Know All Friday, 03 February 2023 10:32 PM

Former Minister of Digital Infrastructure Namal Rajapaksa attempted to legalize cryptocurrency after the Covid-19 pandemic outbreak when people had concerns over exchanging money physically.

Punchamma Saturday, 04 February 2023 05:54 AM

If CB can start a project with hi-tech, hi-power consuming processors for bitcoin mining it will help somewhat to ease the economic crisis. China doing this possibly using renewable energy. Deflationary Bitcoin that increase/decrease it's value periodically, will help pay debts and control inflation. Mining costs are hi-tech computers, electricity power and time (24/7) to run it. One Bitcoin value varies from $25,000 - 50,000. CB may be doing this already? If purchasing coins is risky, mining is the answer. Isn't it better than allowing another foreign currency like INR?

SK Kumara Saturday, 04 February 2023 09:49 AM

Sri Lanka will not adopt any cryptocurrency or anything that has no physical presence. How do you pass cryptocurrency under the table or put in the recipients hand bag ? Third world, low class, uncivilized politico's like to see things in bulk.

Jan Chandra Saturday, 04 February 2023 03:13 PM

This is not the time to be involved in cryptocurrency deals. Please avoid it as the plague until we recover from the current recession.

Fred Sunday, 05 February 2023 04:43 AM

Bitcoin fits the Sri Lankan psyche, always looking for get rich quick schemes, will be a disaster if implemented

Adwani Sunday, 05 February 2023 07:41 AM

Cryptocurrency is a digital currency and everyone need Smart Phone to handle it, then everyone including villagers should be taught to handle Smart Phone. The matter will not end up their, Banda abolished the English Language and again we need to educate people the main language of Cryptocurrency, which is an international digital currency. It is better that we adopt Indian Rupees and Pakistani Rupees to deal with, at least those currencies has a value in Gulf Countries.

Fred Sunday, 05 February 2023 01:10 PM

Engage only in things you fully understand. Advice given by a famous investor based in Singapore Jim Rogers.Would apply here. Working hard, producing more, not printing money that would be the way to grow your wealth and strengthen your currency and pay your debtsNot surprising the Governor rejected the pitch.As for stopping corruption I suppose Draper was thinking of Blockchain technology but the demerits of bitcoin would outweigh any merits- no intrinsic value, too volatile apart from what the Governor has said

Bitcoin in El Salvador Tuesday, 07 February 2023 01:22 PM

A year after the adoption of bitcoin, economic surveys found that cryptocurrency was not widely used in El Salvador, due in part to a lack of digital literacy. A study published by the US National Bureau of Economic Research found that 20% of people who downloaded the Chivo app did not use their $30 sign-on bonus, and 61% of Chivo users stopped using the app after spending their bonus. Despite governmental attempts to make bitcoin acceptance universal, only an estimated 20% of business accepted payment in bitcoin.[28] The Salvadoran Chamber of Commerce found that only 14% of businesses in El Salvador had conducted bitcoin transactions between September 2021 and July 2022, and 3% felt that being able to use bitcoin was valuable. According to the Central Reserve Bank, bitcoin was used in 1.9% of remittance payments sent to El Salvador between September 2021 and April 2022. Media outlets reported that bitcoin had failed to increase tourist revenue, and that its use even in to

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Sri Lanka rejects billionaire Tim Draper’s Bitcoin pitch to tackle corruption

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