Sri Lanka is under extreme economic pressure as it has less than $25 million foreign reserves left. Today, the so-called Sri Lankan government has announced that the citizens should not use bitcoin and other cryptocurrencies to go around the restrictions and regulations. The regular citizens are not banned from sending USD or any other foreign currencies outside Sri Lanka.
Cryptocurrencies being decentralized allow citizens to go around the regulations, undetected, atleast most the time. Gold and silver, while adjust their value according to inflation cannot be used to get out of country or can be used for sending money outside the country.
Cryptocurrencies know no borders and can be freely used wherever internet is available which is why most tech savvy Sri Lankans are moving their wealth to bitcoin and cryptocurrencies to get their funds out of their country.
And yes, that’s exactly what cryptocurrencies were invented for – A store-of-value to counter foolish government policies and the subsequent attempts to fix the folly through incessant money printing.
If you ask us, the Central Bank of Sri Lanka has already lost it and just waiting to peter out any moment now.
And if a citizen do not want to deal with fluctuations, they can move their wealth to stablecoins like USDC, BUSD or USDT, both of which are pegged to United States Dollar.
I am from Brisbane, Queensland and I hold post of Associate Editor at Cryptocoindaddy.