The pivot to crypto technology is an attempt to attract foreign investment into Sri Lanka, according to the Department for Government Information. The investment would be primarily in the digital banking, crypto mining and blockchain fields.
The committee will also research how to avoid money laundering and terror financing.
Sri Lanka’s Minister for Digital Technology – and son of former Sri Lankan President Namal Rajapaksa – tweeted about the news saying:
#LKA is taking a leap fwd today as cabinet approves to establish a committee to propose policy on Block Chain Technology, Digital Banking & Crypto Mining! Forward thinking & proper regulatory framework will ensure that #LKA will lead the digital economy in the region.#futureready
— Namal Rajapaksa (@RajapaksaNamal) October 6, 2021
Rajapaksa was the original proponent of the committee. Back in August he said: “Going forward, Sri Lanka needs to use its potential to create e-commerce platforms that can go global and expand our digital economy.”
The announcement follows a massive uptake of crypto technologies in central and southern Asia. According to a recent Chainalysis report, between the period of July 2020 and June 2021, the Central and Southern Asian and Oceanic (CSAO) crypto market increased by 706%.
The Sri Lankan government will also be aware that two of the top three countries with the largest uptake in crypto technology globally are neighbouring India and Pakistan.
In a statement, the Department for Government Information acknowledged the uptake from other nation.
“The necessity of developing an integrated system of digital banking, blockchain, and cryptocurrency mining has been identified to pace on par with the global partners in the region while expanding trade to the international markets,” it read.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.