Silicon Valley billionaire Tim Draper’s efforts to promote the adoption of Bitcoin in Sri Lanka have been rejected by the country’s central bank governor. Draper, who was in Sri Lanka to film an episode of his TV show “Meet the Drapers”, was dressed in a Bitcoin tie when he met with Governor Nandalal Weerasinghe.
Draper’s Pitch
During the meeting, Draper referred to Sri Lanka’s reputation for corruption and argued that cryptocurrency could help prevent graft by keeping perfect records. “A country known for corruption will be able to keep perfect records with the adoption of Bitcoin,” Draper said.
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Rejection
However, Governor Weerasinghe rejected Draper’s proposal, saying, “Adoption of 100% Bitcoin won’t be a Sri Lanka reality ever.” The governor cited other technologies that can efficiently distribute financial services and disburse electronic welfare payments, and noted that a country without its own currency couldn’t have monetary-policy independence.
Sri Lanka’s Economic Crisis
Sri Lanka, which has experienced fuel and food shortages that led to riots last year, is debt-stricken and in talks with international creditors about debt restructuring. Inflation stands at 54.2% and the economy contracted 8% last year, according to the governor.
Despite being a perfect place for Bitcoin adoption due to its economic crisis, Sri Lanka rejected Draper’s proposal. The governor noted that introducing Bitcoin could make the crisis worse and that other technologies could efficiently distribute financial services to foster inclusion.
