Myanmar’s Government in Exile Announces Stablecoin Tether as the Official Currency
Myanmar descended into turmoil in February, when the elected government of Aung San Suu Kyi’s National League for Democracy was deposed in a coup. Protests and confrontations erupted everywhere where the national economy was wrecked, and the people of Myanmar were fatigued by the pervasive COVID-19 pandemic.
Additionally, Myanmar’s government-in-exile has employed USDT as a financial tool against General Min Aung Hlaing’s military dictatorship. Myanmar had a military coup in February of this year, overthrowing the government and establishing the two parallel administrations that exist today.
Until now, the international world has not acknowledged which party is legally recognized in Myanmar. Currently, the nation is ruled by a military-backed administration that strictly controls everything from money to the military.
As for the government-in-exile, which is headed by members of the National League for Democracy Party who escaped to the jungle to cooperate with ethnic minority groups against the army, this government is advising citizens to utilize USDT rather than KYAT to prevent military value manipulation and control. Additionally, they proclaimed military-issued KYAT coins to be unlawful.
1. To enhance and speed current financial and trading services, the following digital currency, a stable coin, has been approved for usage in the nation – Tether (USDT).
2. As a result, the Central Bank of Myanmar’s currency unit released in September 20202 is invalid. The military administration controls the central banks.
Due to the junta’s inability to regulate the USDT, this is an unique effort by the government-in-exile to end the military’s financial power over the Myanmar people. Nevertheless, the ramifications for the financial sector are significant; when a country becomes dollarized, the state loses command of the native currency.
Tether (USDT) is a digital currency designed to be pegged to the US dollar. Tether was founded in 2014 with the goal of creating a stable cryptocurrency that could be used in the same way as a digital dollar or stablecoin. Tether’s price is determined by the value of the US dollar.
Though Tether was once only available on the Bitcoin network through the Omni Layer protocol, it is now available on Ethereum as an ERC20 token. Tether is sold on the Bitcoin (both Omni and Liquid Protocol) and Ethereum (both Omni and Liquid Protocol) blockchain networks, as well as on the EOS and Tron blockchain networks.
Tether coins are issued by Tether Limited, a joint venture between Bitfinex and cryptocurrency exchange Tether. Tether has previously said that the Tether currency is 100% supported by its own reserves. Tether’s attorneys emphasised, however, that only 74% of Tether was held in reserve in 2019, and Tether clarified that the term “completely backed” covers loans to partner institutions.