• Tim Draper, a billionaire investor, recently traveled to Sri Lanka in an attempt to promote Bitcoin.
• The nation’s central bank rejected his proposal and stated that the adoption of Bitcoin would never occur within the country.
• Despite this rejection, Draper made a strong case for why Bitcoin could be beneficial to fight corruption in Sri Lanka.
Tim Draper Visits Sri Lanka
Billionaire investor Tim Draper recently took a trip to Sri Lanka in order to promote bitcoin use amongst the nation’s central bank. Unfortunately, he was met with resistance as regulators of Sri Lanka commented that the use of crypto or bitcoin would never occur within their borders.
Draper Makes His Case
In his opening statement to the bank, Draper proposed that decentralized currency could help fight rampant corruption in Sri Lanka. He highlighted how perfect records could be kept with the adoption of bitcoin and even wore a bitcoin tie during his meeting in an effort to show support for digital currencies.
Rejection from Bank
The governor of the bank Nandalal Weerasinghe strongly rejected Draper’s proposal stating: „We don’t accept… Adoption of 100 percent bitcoin won’t be a Sri Lanka reality ever.“ He further expressed concern that introducing bitcoin may make existing economic crises worse.
Difficulty Understanding Price Fluctuations
Though initially created as payment tools, many companies and entities are reluctant to adopt BTC due to its continuous price fluctuations. For example, if someone pays $50 worth of merchandise with BTC but its value drops by 24 hours later, then the store loses money on their purchase despite nothing being wrong on their part.
Despite Tim Drapers best efforts, it is clear that Sri Lankan regulators do not plan on adopting bitcoin or any other cryptocurrency anytime soon due uncertainty surrounding its price volatility and potential worsening effects on existing economic crisis‘.