Myanmar's Secret Administration Endorses Stable Digital Currency, Tether, as Legitimate Tender
In a bold move, the National Unity Government (NUG) of Myanmar, led by Nobel Peace Prize laureate Aung San Suu Kyi who is currently serving a 2-year prison sentence, has declared stablecoin Tether as the nation's official currency. The NUG, a coalition of pro-democracy organizations and parliamentarians ousted by a military coup in February 2021, is using Tether as part of its fundraising campaign to overthrow Myanmar's present military regime.
The military coup, which took place in February of this year, has been met with international criticism and sanctions for the regime's handling of the political crisis. The Central Bank under the military regime declared all digital currencies illegal in May, but the NUG continues its fundraising efforts, having raised $9.5 million by selling "Spring Revolution Special Treasury Bonds" to Myanmar's migrant communities.
The use of Tether, a stablecoin that is widely used globally but not officially recognized as a legal currency in any country, is not without controversy. Tether has been the subject of numerous debates over the years, with privacy concerns and the present regime's seizure of funds being key factors in its adoption as an official currency for local use.
The European Union officially acknowledged the NUG as the country's sole legitimate representative in October. However, the military regime's recent declaration that the kyat, Myanmar's official currency, has lost nearly 60% of its value against the dollar since the start of September, has led to the NUG's finance minister Tin Tun Naing to state that Tether will be used for domestic purposes to make trade, services, and payment systems easier and speedy.
The move to adopt Tether as the official currency is not unique. El Salvador adopted Bitcoin as legal tender earlier this year, a move that was also met with criticisms. The Japanese financial services agency recently announced plans to limit stablecoin issuance to banks and wire transfer providers in 2022.
The sales of the "Spring Revolution Special Treasury Bonds" were temporarily halted due to overwhelming demand until December 6. Despite having no power or control over any territory in the country, the NUG continues its fundraising campaign, highlighting the resilience and determination of the pro-democracy movement in Myanmar.
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