According to a spokesperson of the State Administration Council, the military government intends to establish a digital currency to facilitate local transactions and boost the country’s economy, which has been stumbling since the coup in 2013.
However, as Deputy Information Minister Major General Zaw Min Tun stated, it is unclear whether the military administration will engage with local companies to launch its digital currency.
Since mid-December, Tether has been recognized by Myanmar’s shadow government as a legal form of payment. The country’s government recommended cryptocurrency bans to combat this problem. Despite the difficulty of tracking crypto payments, the prohibition had a lesser impact than it could have.
According to the World Bank, Myanmar’s economy contracted by about 20% in the fiscal year that ended in September 2021, and Myanmar is expected to grow by only 1% in the fiscal year 2022.
The economy, financial system, and other critical socio-economic structures have all been seriously harmed due to the military takeover.
Myanmar’s junta came to power after a coup spearheaded by military generals and senior officials early last year. The militant group imprisoned Aung San Suu Kyi, Myanmar’s de facto leader, sparking massive protests and a harsh military crackdown that killed over 1,500 civilians.
Suu Kyi’s exiled administration is implementing stablecoins. The USDT became the country’s official currency in December. Naturally, this was primarily done to raise funds and make it very clear that the group disapproves of the military administration that banned cryptocurrency in May 2020.