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How Crypto Adoption Could Help Sri Lanka Amid Recent Turmoil

Published 07/15/2022, 09:57 AM
Updated 07/15/2022, 10:00 AM
© Reuters How Crypto Adoption Could Help Sri Lanka Amid Recent Turmoil
TWTR
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  • Sri Lanka is facing its worst economic crisis.
  • Namal Rajapaksha, a member of parliament, reveals plans to impose digital currency payments.
  • Tron founder Justin Sun said he can leverage Web3 to help the country get out of bankruptcy.

The South East Asian country Sri Lanka is undergoing an unfortunate series of events.

The island country is facing its worst economic crisis and is running low on its foreign reserves to import goods. Besides that, Sri Lanka has defaulted on its debts for the first time in its history.

Amid the nation’s current economic situation, some crypto enthusiasts believe that the only way to save the country from bankruptcy is to introduce digital currency and blockchain.

For instance, Tron founder Justin Sun said that he can leverage web3 to help the country get out of bankruptcy.

Sun said in a Twitter (NYSE:TWTR) post, “Sri Lanka is officially on DAO mode. I have some great ideas on how to get Sri Lanka out of bankruptcy and into prosperity with Web3 as a solution.”

Recalling a post in 2021, Namal Rajapaksha, a member of the parliament, revealed a board meeting to bring blockchain adoption and digital currency payments to the country.

In addition, Namal Rajapaksha said that it is time for Sri Lanka to keep up with the global trends, which not only will introduce better opportunities in the global markets but also will enable us as a government to create more digital-centric opportunities and strengthen the economy.

Similarly, his father, Mahinda Rajapaksha, stated, “As the cabinet approves to establish a committee to propose policy on blockchain technology, digital banking and crypto mining, proper regulatory and framework will ensure that Sri Lanka will lead the digital economy in the region.”

However, not every party agrees with one idea; the Central Bank of Sri Lanka (CBSL) released a statement that shows they refuse to regulate digital currencies and blockchain technology and warns people of crypto frauds.

CBSL does not consider crypto as a legal tender in the nation, and CBSL has not given a permit or authorization to any entity to operate in the nation.

Amid the recent resignation of President Rajapaksha, regulations surrounding cryptocurrencies in Sri Lanka are still uncertain. In a few days, the local Parliament will elect a new leader, and the Sri Lankan crypto enthusiasts can only hope that the next president will be warm toward digital currencies.

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