The Central Bank of Sri Lanka (CBSL), Governor, Ajith Nivard Cabraal asserted that there has been no change in the Central Bank’s stance on cryptocurrencies amidst possible measures hinted by the government to promote cryptocurrency mining.
The Governor said this in response to a query as to whether such transactions are permissible in Sri Lanka as some companies, especially those engaged in the sale of luxury apartments, have publicly advertised their acceptance of cryptocurrency payments on sale and lease.
“Our policy on cryptocurrencies has not changed. We are following the same policy. If people use different currencies, they should take that risk. There is the same problem when exchanging goods. That is not what we expect. The currency of Sri Lanka is the Rupee. We have not approved anything other than that, ”Cabraal said.
Meanwhile, the CBSL Deputy Governor of the CBSL, TMJYP Jayasinghe further said that the public had been made aware of the risks involved.
However, she added that if there are people involved in this related business, they should take that risk.
The CBSL issued a press release on 2021 April 09 stating its position on the use of cryptocurrency. It stated that the Central Bank of Sri Lanka would provide the public with significant financial, operational, legal, consumer protection, and security risks to the economy as well as consumers by investing in virtual currency.
However, the Cabinet of Ministers recently approved a proposal made by the Minister of Development Coordination and Monitoring, Namal Rajapaksa, to allow the Board of Investment to take the necessary steps to approve cryptocurrency mining companies for investment in Sri Lanka.
In this regard, the Cabinet of Ministers also approved the creation of an eight-person committee tasked with looking into the regulations around digital assets in other countries.
“The necessity of developing an integrated system of digital banking, blockchain and cryptocurrency mining technology has been identified to pace on par with global partners in the region while expanding trade to the international markets,” the Government Information Department said.