Sri Lanka Central Bank Governor, Nandalal Weerasinghe, said introducing Bitcoin would make the crisis worse.

Billionaire investor Tim Draper got a more challenging reception than he anticipated when he proposed Bitcoin to Sri Lanka, a bankrupt nation.

Draper was in Sri Lanka on Tuesday, speaking with local entrepreneurs about cryptocurrency adoption. The businessman met that day the country’s president, Ranil Wickremesinghe, on the subject.

Draper went to the country’s central bank to deliver the same speech. However, Governor Nandalal Weerasinghe, who is still working to solve the nation’s financial challenges, did not embrace the idea. The central bank governor responded that Bitcoin adoption in Sri Lanka would not be a 100% reality.

Weerasinghe said that introducing Bitcoin would make the crisis worse; therefore, they are still deciding to go that route. The government official claimed that other technologies could be used effectively in financial services to promote social inclusion and quickly disburse funds to those who need them.

Financial Crises Leading Nations to Bitcoin

Draper described Sri Lanka as a rogue nation during the meeting, and presented cryptocurrency as a solution. He argued that Sri Lanka, a country known for its mineral resources, could have addressed its corruption by keeping perfect records through the adoption of Bitcoin.

Last year, Sri Lanka faced one of the worst economic crises in its history, sending prices soaring and causing food and fuel shortages across the country. As a result, such difficulties sparked protests that forced President Gotabaya Rajapaksa to flee the country and later announce his resignation.

Sri Lanka is currently in negotiations with a group of private creditors from Japan, China and India to restructure its debt in accordance with the IMF plan. The country is restructuring its debt payments of about $51 billion out of $28 billion, due by 2027.

According to Draper, Sri Lanka can address its financial crisis by adopting Bitcoin. The billionaire investor views the cryptocurrency as a good store of value, not subject to changes in government or central bank policy.

At the meeting, Draper cited El Salvador. This nation adopted Bitcoin as legal tender after its government embraced cryptocurrencies to boost financial inclusion and economic development.

Countries like Zimbabwe, Turkey and Venezuela are also witnessing ongoing financial crises. They are experiencing hyperinflations, and as a result, their citizens are increasingly turning to cryptocurrencies as a means of exchange and a store of value.

According to Draper, Bitcoin is one of the essential tools for humanity to overcome financial crises. He believes that investors should continue to look for opportunities by directly investing in Bitcoin and its underlying technology (Blockchain).

Bitcoin Price Action

Today, Bitcoin is trading at $23,633 with a trading volume of $30.7 billion. Bitcoin is down 0.93% in the last 24 hours. The price of the cryptocurrency rose 3.22% in the previous seven days.

Despite the brief ongoing rally, the cryptocurrency has lost more than 70% of its value since its all-time high above $69,000 recorded in November 2021. Tim Draper remains bullish; he believes that the flagship cryptocurrency will reach $250,000 this year.

By Audy Castaneda

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