Tim Draper proposed to the authorities of Sri Lanka to legalize bitcoin to attract investment

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Billionaire Tim Draper suggestedSri Lankan authorities to legalize Bitcoin as a means of payment, as well as introduce blockchain and artificial intelligence into various sectors of the country to attract investment.

Cryptocurrency enthusiast and major venture capitalistinvestor Tim Draper arrived in Sri Lanka to meet with local startup leaders and the government, including President Ranil Wickremesinghe. Speaking at a panel discussion called From Troubled Nation to Startup Nation, organized 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 an e-Residency program several years ago.

“Before, Salvador was not particularly important to anyoneinteresting. But after Bitcoin was recognized as legal tender in El Salvador, a flood of investors followed into the country. The same thing happened to Estonia when the country introduced an e-citizenship program, digital identification, voting and parking. You will soon ask yourself why you are trading in a fiat rupee that has fallen 80% in six months. Of course, Bitcoin took a big hit, but it's not that bad. It’s better to have a cryptocurrency that will appreciate over time than a currency that is guaranteed to lose value in the next year,” Draper said.

The entrepreneur added that Bitcoin is capable ofsmooth out the negative impact of the economic crisis that arose due to excessive money printing and thoughtless budget spending. According to Draper, in most countries there is usually one centralized authority that prints too much money, mismanages the economy, spends money recklessly or creates high inflation. As for decentralized cryptocurrencies, they are transparent, and if their rate decreases in one place, it increases in another. Therefore, by replacing fiat currency with Bitcoin, more taxes will flow into the government treasury, while corruption will be reduced, Draper is sure.

“Bitcoin and artificial intelligence canbecome even larger than the Internet. Bitcoin has opened up a number of interesting markets, and blockchain allows for ideal record keeping and information storage. Few governments have recognized this, but they can now collect taxes without having to engage an auditor, accountant or transfer agent. If you make a deal using smart contracts, you don’t need a lawyer,” the businessman noted.

Tim Draper is known for his commitmentBitcoin. Previously, he suggested that in 2023 the Bitcoin rate could rise tenfold and reach $250,000. Draper explained that this could happen when retailers begin to accept Bitcoin for payment everywhere.