Billionaire Tim Draper suggested that the authorities of Sri Lanka legalize bitcoin as a means of payment, as well as introduce blockchain and artificial intelligence in various sectors of the country to attract investment.
Cryptocurrency enthusiast and high-profile venture capitalist Tim Draper is in Sri Lanka to speak with local startup executives and the government, including President Ranil Wickremesinghe. Speaking at a panel discussion titled From Troubled Nation to Startup Nation hosted by startup accelerator Hatch, Draper called on Sri Lanka to follow the example of El Salvador, which legalized bitcoin in 2021, and Estonia, which launched the e-Residency e-citizenship program a few years ago.
“Before, El Salvador was not particularly interesting to anyone. But after bitcoin was recognized as legal tender in El Salvador, a flood of investors followed. The same thing happened to Estonia when the country introduced an e-citizenship program, digital identity, voting and parking. You will soon ask yourself why you are working with the fiat rupee, which has fallen by 80% in six months. Sure, bitcoin has suffered a lot, but it’s not that bad. It is better to have a cryptocurrency that will rise over time than a currency that is guaranteed to lose value next year,” Draper said.
The entrepreneur added that bitcoin is able to smooth out the negative impact of the economic crisis that arose due to excess money printing and thoughtless budget spending. In most countries, Draper says, it’s common for one centralized agency to print too much money, mismanage the economy, spend money recklessly, or create high inflation. As for decentralized cryptocurrencies, they are transparent, and if their rate decreases in one place, it grows in another. Therefore, by replacing fiat currency with bitcoin, more taxes will flow into the government’s treasury, while corruption will be reduced, Draper is sure.
“Bitcoin and artificial intelligence could become even bigger than the Internet. Bitcoin has opened up a number of interesting markets, and the blockchain is ideal for keeping records and storing information. Few governments have recognized this, but now they can collect taxes without the need for an auditor, accountant, or transfer agent. If you make a deal using smart contracts, you don’t need a lawyer,” the businessman said.
Tim Draper is known for his commitment to Bitcoin. Earlier, he suggested that in 2023, the bitcoin exchange rate could rise tenfold and reach $250,000. Draper explained that this could happen when retailers begin to accept bitcoin for payment everywhere.
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