Sri Lanka has joined the global crypto adoption movement by forming a committee to investigate and deploy blockchain and crypto mining technology.
According to the letter released on Oct. 8 by Mohan Samaranayake, Sri Lanka’s director-general of government information, the authorities have accepted a recent proposal to attract investments in the country’s blockchain and cryptocurrency projects.
Sri Lankan authorities, according to Samaranayake, have highlighted the necessity to build “an integrated system of digital banking, blockchain, and cryptocurrency mining technologies” to compete with global partners and international markets.
According to a recent estimate, there was a 706 percent increase in Central and Southern Asia and Oceania between July 2020 and June 2021.
According to Chainalysis statistics, the value of transactions in the area rose to 14 percent ($572.5 billion), with India having the largest worldwide transaction value.
Sri Lanka’s central bank issued a public warning about the hazards of cryptocurrency investments in April, noting a lack of legal or regulatory remedies.
However, less than a month after the notice was issued, the central bank selected three banks to create a proof-of-concept for a shared Know Your Customer facility utilizing blockchain.