Myanmar's Underground Authority Endorses Digital Currency Tether as Legal Tender
Myanmar's National Unity Government Declares Tether as Official Currency
In a significant move, the National Unity Government (NUG) of Myanmar has declared stablecoin Tether as the nation's official currency. The NUG, a coalition of pro-democracy organizations and parliamentarians who were ousted by a military coup in February, made this announcement as part of its fundraising campaign to overthrow the current military dictatorship.
The NUG raised $9.5 million by selling "Spring Revolution Special Treasury Bonds" to Myanmar's migrant communities. Sales of these bonds were temporarily halted due to overwhelming demand until December 6. The Ministry of Planning, Finance, and Investment of the NUG published a post on Facebook proclaiming Myanmar's kyat, the country's official currency, invalid, and Tether's dollar-backed stablecoin as legal tender in its place.
The declaration of Tether as the official currency is a bold move, considering the NUG does not have control over any territory within Myanmar. The kyat has lost nearly 60% of its value against the dollar since the start of September, leading to privacy concerns and the present regime's seizure of funds. The adoption of Tether is seen as a solution to these issues, making local transactions easier and speedier.
The NUG's finance minister, Tin Tun Naing, stated that Tether will be used for domestic purposes, making trade, services, and payment systems more accessible. However, it's worth noting that Tether has been the subject of numerous debates over the years, raising questions about its stability and security.
The Central Bank under Myanmar's military regime declared all digital currencies illegal in May of this year. Meanwhile, the European Union officially acknowledged the NUG as the country's sole legitimate representative in October. Despite El Salvador adopting Bitcoin as legal tender earlier this year, which was also met with criticisms, the NUG's move with Tether seems to be a unique approach in the ongoing struggle for power in Myanmar.
As for the current status of Aung San Suu Kyi, the former leader of Myanmar who was ousted by the military coup, she is currently imprisoned with a jail sentence of 2 years. The NUG is led by Suu Kyi, who continues to fight for democracy and the people of Myanmar from exile. The NUG's fundraising campaign and recognition of Tether as an official currency are part of this ongoing struggle.
It's unclear whether other countries or financial institutions have advanced the recognition of the stablecoin brand Tether as an official currency in Myanmar. However, the Japanese financial services agency announced plans to limit stablecoin issuance to banks and wire transfer providers in 2022, highlighting the growing interest and regulation of digital currencies worldwide.
The use of Tether as Myanmar's official currency is a developing story, and more information about the amount of money raised since the temporary halt of the bond sales is yet to be provided by the NUG. As the situation unfolds, the implications of this move could have significant impacts on the economy and the struggle for power in Myanmar.
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