Introduction
Sri Lanka, known for its natural beauty and wildlife, has always been a cash-based country. Despite plans to introduce its own digital currency by the end of 2024, cash remains the dominant form of payment.
What You Need To Know About Bitcoin In Sri Lanka
Sri Lanka maintains an anti-crypto stance, considering digital currency as not legal tender in the country. The use of debit and credit cards for cryptocurrency transactions is also prohibited. The Central Bank warns against the use of cryptocurrencies due to the risks involved in scams and fraudulent projects.
Would Bitcoin Solve Sri Lanka’s Economic Crisis
Sri Lanka has been facing an economic crisis since 2019, exacerbated by fuel shortages in 2022. The country’s GDP is expected to reach $76.86 billion by the end of 2024. However, the Governor of the Central Bank believes that adopting decentralized cryptocurrencies would worsen the economic condition. Despite suggestions from American millionaire Tim Draper to use Bitcoin as a legal tender, Sri Lanka rejected the idea.
Central Bank Warns of Crypto Scams
The Central Bank cautions the public about financial scams related to crypto-investments, which exploit individuals and result in financial losses. The bank emphasizes that it has not issued any licenses or authorized any businesses to operate cryptocurrency schemes or advisory services.
Central Bank Plans to Launch Digital Currency
Sri Lanka’s Central Bank intends to introduce a digital currency called “Lanka Pay” by the end of 2024. This move aims to enhance online payment systems and increase financial inclusion. Interest in digital currencies is growing within the Central Bank, and studies are being conducted on the potential benefits of a Central Bank Digital Currency (CBDC).
Hot Take: Sri Lanka’s Stance on Crypto and the Launch of ‘Lanka Pay’ in 2024
Sri Lanka’s introduction of a digital currency reflects its efforts to modernize its payment systems. While cash remains dominant, the launch of “Lanka Pay” shows a willingness to explore digital alternatives. However, the country’s anti-crypto stance and concerns about scams indicate caution towards cryptocurrencies. Sri Lanka’s economic crisis and the Governor’s belief that decentralized cryptocurrencies would worsen the situation further highlight the challenges in adopting digital currencies. Nevertheless, the planned launch of a Central Bank Digital Currency demonstrates Sri Lanka’s recognition of the potential benefits of digital currencies for financial inclusion and efficiency.
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