Sri Lanka’s cabinet has approved the formation of a committee to oversee a potential venture into digital banking, blockchain, and crypto mining solutions.
According to a press release from the Department of Government Information, the new emphasis on digital solutions is part of attracting foreign investment in the highlighted fields.
The committee has also been tasked with ensuring that, in the event of blockchain adoption, mechanisms for preventing money laundering, terrorism financing, and other criminal activities associated with the technology are developed.
“The necessity of developing an integrated system of digital banking, blockchain, and cryptocurrency mining has been identified in order to keep pace with the region’s global partners while expanding trade to international markets,” the department stated.
The five-member committee will take a page from the playbooks of other jurisdictions such as Dubai, Malaysia, the Philippines, Singapore, and the European Union.
Namal Rajapaksa, a cabinet member and Minister of Development Coordination and Monitoring, proposed the committee.
Maintaining a competitive edge
The country hopes to keep up with other South Asian countries that are already evaluating the blockchain and cryptocurrency sectors.
In August of this year, Rajapaksa stated his intention to push for blockchain technology in the country as part of the country’s economic development.
He has argued that the country should put more emphasis on blockchain and use its potential to build global e-commerce platforms that will help the country’s digital economy grow.
According to a government official, the sector has the potential to generate a large amount of foreign exchange while also creating a large number of jobs.
Under the national policy framework dubbed “Vistas of Prosperity and Splendour,” the country has recently made inroads toward modernizing its economy.