Myanmar Shadow Government Approves Crypto As Official Currency | Crypto

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The National Unity Government has said it will allow the use of Tether as it attempts to fund the “revolution” against the military government.

Myanmar’s shadow government has said it will allow the use of the world’s largest stablecoin, Tether, as its official currency, potentially allowing it to more easily raise funds and make payments.

The Government of National Unity (NUG), which includes pro-democracy groups and the remnants of Myanmar’s civil administration that was overthrown in a military coup earlier this year, has sought to lift funds for his “revolution” to overthrow the ruling military government.

The military government banned NUG and called it a “terrorist” movement.

Tin Tun Naing, NUG Minister for Planning, Finance and Investment, said in a Facebook post on December 11 that NUG would officially recognize USD Tether, which he said would allow transactions better and faster.

Tether can similarly be transferred to other cryptocurrencies like Bitcoin, making it difficult for governments and other authorities to track or prevent payments.

However, its value is officially pegged to the US dollar and therefore remains stable unlike most other cryptocurrencies.

Financial stability

Tether has a market value of $ 76 billion, and following criticism and suspicion about the value of the assets underlying stablecoin, the company, also known as Tether, regularly publishes auditor reports on its reserves.

Myanmar’s banking and financial system has been in turmoil since the coup as opposition groups attempt to stifle the military’s efforts to consolidate power by encouraging people not to pay taxes , as well as joining protests, a campaign of civil disobedience and the boycott of businesses and a national lottery.

Meanwhile, NUG is deprived of official access to government funds, and last month began selling bonds to Myanmar nationals largely overseas to raise funds.

In the months following the coup, Myanmar’s banks ran out of liquidity and the local currency, the kyat, fell by more than 60%.

Tether’s advocates say its use by the NUG underscores the benefits of hard-to-trace payment methods for authorities.

However, stablecoins have come under intense scrutiny by financial regulators in developed economies, in part for the same reason, as they fear their widespread use in an unregulated environment could jeopardize financial stability due to their relative lack of transparency.

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