Sri Lanka Makes Small Step Into Crypto & Blockchain Industries As Bitcoin Market Capitalization Reaches 1 Trillion USD
Sri Lanka’s government has approved the establishment of a committee to supervise a possible push into digital banking, blockchain technology, and cryptocurrency mining solutions. The formation of the committee was suggested by Namal Rajapaksa, Sri Lankan Minister of Development Coordination and Monitoring,
According to a news statement from the Department of Government Information, the increased focus on digital solutions is part of the government’s attempts to encourage international investment in the aforementioned areas.
As part of this mission, the group has been charged with creating methods to fight money laundering, terrorism funding, and other kinds of illegal behaviour that may emerge as a consequence of the broad use of blockchain technology.
“It has been recognised as essential to create an integrated system of digital banking, blockchain, and cryptocurrency mining in order to maintain pace with global partners in the area while increasing commerce to worldwide markets,” the department said.
Keeping Up With International Digitalization Efforts
Following the recent establishment of a national policy framework called “Vistas of Prosperity and Splendour”, Sri Lanka has made great progress towards modernising its economy.
Namal Rajapaksa has advocated that the nation should put greater focus on blockchain technology and capitalise on its potential to create e-commerce platforms that can be scaled worldwide and assist to grow the country’s digital economy.
In August 2021, he announced his desire to advocate for the implementation of blockchain technology in the nation as part of the country’s economic growth. He said that Sri Lanka must aim to keep up with its South Asian rivals, who are actively assessing the blockchain and cryptocurrency industries.
Bitcoin’s Market Capitalization Hit $1 Trillion
With its market capitalization of up to $1 trillion, today, Bitcoin is worth slightly more than the social media company Facebook which has recorded a valuation of around $900 billion. Bitcoin’s market value is also greater than that of Tesla which has a market capitalization of $800 billion.
Despite the fact that Bitcoin is classed as a separate asset class, the cryptocurrency has grown in popularity and has started to draw participants from the conventional financial industry.
Following a steep decrease in asset value earlier in September 2021 as a consequence of heightened crypto crackdown in China, the asset value has risen above $50,000, reclaiming the $1 trillion market cap.
Despite the fact that traditional stocks may outperform Bitcoin, the cryptocurrency is rapidly becoming a popular financial alternative for many individuals. Interestingly, despite being a highly volatile asset subject to increasing regulatory scrutiny by many international authorities, Bitcoin has maintained its return-on-investment (ROI) over the years.
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