Sri Lanka is Just the Beginning — More Defaults Are Coming & Perhaps Another Case for Bitcoin
During the first two weeks of April, 2022, Sri Lanka defaulted on its debt for the first time since the island country declared its independence — almost 75 years ago. To seasoned economists, this likely wasn’t a surprise — as the signs of debt default were all there, with its occurrence likely more a matter of when, and not if.
However, for the 22 million Sri Lankans who call the island home, it is likely that at best, the ramifications of this default were unexpected, and at worst, its residents were not even aware of such an incident brewing in the background.
But how did this happen? Is this just the tip of the iceberg? Rising global inflation, rising commodity prices, the continued economic impacts of covid-19, and the maturity of various debt instruments held by nations is all putting unbelievable pressure on various countries around the world to find ways to avoid a similar fate as Sri Lanka.
Below, we cover what happened in Sri Lanka, how it happened, and why, countries aside — there may be another case for Bitcoin for other countries which may soon face a similar fate.
