Sri Lanka Dismisses Tim Draper’s Idea to Combat Corruption With Bitcoin

Nandalal Weerasinghe – Governor of the Central Bank of Sri Lanka – rejected Tim Draper’s idea to eliminate corruption in the country by embracing bitcoin.

The banker argued that adopting the primary cryptocurrency could worsen the economic situation of the nation.

Dismissing the Bitcoin Concept

The American venture capital investor recently visited Sri Lanka to shoot an episode of his TV show “Meet the Drapers.” He also held discussions with the President of the country – Ranil Wickremesinghe – and the Governor of the central bank – Nandalal Weerasinghe – regarding the financial crisis reigning in the region and the possible solutions that could ease the turbulence.

Draper claimed that Sri Lanka has emerged as a “corruption capital” and suggested shifting towards bitcoin to get on the right track:

“Have you seen Sri Lanka in the news? It’s known as the corruption capital. A country known for corruption will be able to keep perfect records with the adoption of Bitcoin.”

Weerasinghe, though, was not open towards the idea, claiming “the adoption of 100% bitcoin won’t be a Sri Lanka reality ever.” 

The Governor believes technologies different from the leading digital asset could successfully distribute monetary services and boost financial inclusion in the country. 

“We don’t want to make the crisis worse by introducing Bitcoin,” he concluded.

The economic condition of Sri Lanka is quite concerning, with inflation surging above 54%. The country was also hit by an energy crisis last year, which triggered massive protests against the government. The shortage of fuel, domestic gas, and essential goods was so severe that locals had to queue for days to buy supplies.

Draper pointed out El Salvador, which, despite its issues (significant unemployment, poverty, and inequality), declared bitcoin legal tender in 2021. It positively impacted the country, boosting investments in the area and fostering the local tourism industry.

One of the poorest nations across the globe – the Central African Republic (CAR) – also embraced the asset as an official payment method inside its borders. 

Tim Draper’s Bullish Forecast

The billionaire predicted in June 2021 that bitcoin will shoot to $250,000 by the end of 2022, envisioning that multiple giant institutions will accept it as a means of payment. The asset finished last year far below that forecast at around $16,500.

Despite the market decline, Draper remained bullish in the following months, saying BTC will reach the $250K target once the macroeconomic conditions improve and when women start using it for daily shopping:

“When women realize they can get a discount by paying in bitcoin or retailers realize they can double their income by accepting bitcoin, it’s going to move pretty quickly.”