The use of cryptocurrencies (undeclared electronic currency) will be permitted in the future in the Colombo Port City (Port City), said Saliya Wickramasuriya, Chairman of the Port City Special Economic Zone Governing Commission.
According to the Aruna newspaper, the Chairman has pointed out that cryptocurrency or digital currency will be included in the future recreational activities in the port city premises.
It also notes that the use of cryptocurrencies such as Bitcoin has increased somewhat among the business and urban community in Sri Lanka with the recent decline in government-owned dollar reserves.
The port city is said to be planning to allow the use of multiple foreign currencies, including US dollars, in the future.
However, the Central Bank of Sri Lanka has not yet approved the use of cryptocurrencies in the country.
The Central Bank has recently reiterated that the use of cryptocurrencies is risky and should not be used in Sri Lanka as it is widely used for terrorist financing and money laundering.
However, Minister Namal Rajapaksa is taking a special interest in introducing cryptocurrencies to Sri Lanka.
He has also appointed a special committee with the approval of the Cabinet to make appropriate recommendations for taking the necessary steps to introduce cryptocurrencies in Sri Lanka.
China despises Crypto…
However, China, the port city’s major investor, said in a statement on September 24 that its central bank had ruled that cryptocurrency transactions were illegal.
They also pointed out that the use of this money would pose a serious threat to the assets of the Chinese people.
China has long been the world’s largest cryptocurrency market. Its fluctuations often affect the global price of cryptocurrencies.
With the Chinese announcement, the price of Bitcoin dropped to more than $ 2,000 ($ 1,460).
Chinese financial institutions, which have been investigating the matter for years, have now identified it as the worst form of money laundering.
According to economists, allowing the currency to be used in Port City could jeopardize diplomatic relations between China and Sri Lanka.