Myanmar's Underground Administration Declares Digital Currency Tether as Legal Tender
The financial landscape in Myanmar is undergoing significant changes, with the adoption of digital currencies like Bitcoin and the use of alternative assets like Tether becoming increasingly prevalent. In a move to protect consumers from the risks posed by asset-backed stablecoins like Tether, the Japanese Financial Services Agency announced plans to limit stablecoin issuance to banks and wire transfer providers in 2022. This decision comes in the wake of numerous debates over the years regarding Tether's stability and security. Meanwhile, the National Unity Government (NUG) in Myanmar has recognized Tether as an official currency in its fundraising campaign to overthrow the military dictatorship. The NUG raised $9.5 million by selling 'Spring Revolution Special Treasury Bonds' to Myanmar's migrant communities, using Tether as the medium of exchange. However, the Myanmar Central Bank has declared all cryptocurrency concepts illegal, threatening offenders with jail sentences and fines. This decision comes as the kyat, Myanmar's official currency, has lost nearly 60% of its value against the dollar since September. The sales of the 'Spring Revolution Special Treasury Bonds' were temporarily halted due to overwhelming demand until December 6, with little information about funds raised since then. Interestingly, El Salvador adopted Bitcoin as legal tender earlier this year, a move that was also met with criticisms. However, the adoption of Tether in Myanmar seems to be driven by privacy concerns and the seizure of funds by the present regime. Despite the Myanmar Central Bank's stance on cryptocurrency concepts, it appears that the use of Tether as an official currency in the NUG's fundraising campaign is not recognized by the government. As of now, there is no information in the search results indicating that anyone has announced the recognition of Tether as an official currency in Myanmar. This dynamic situation underscores the complexities and challenges faced by governments and financial institutions in managing the integration of digital currencies into their economies. As the use of cryptocurrency concepts continues to grow, it will be interesting to see how Myanmar and other countries navigate this evolving landscape.
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