Myanmar’s National Unity Government (NUG), headed by supporters of imprisoned Aung San Suu Kyi, has declared Tether the country’s official currency.
Bloomberg reports that the NUG would take USDT for its ongoing fundraising campaign to replace Myanmar’s present administration. Additionally, NUG generated $9.5 million via selling “Special Spring Revolution Treasury Bonds” to the global Burmese community. The group’s objective is to raise $1 billion using this method.
NuG’s Ministry of Planning, Finance, and Investment announced the decision on Facebook on Monday.
Introducing the USDT as Myanmar’s official currency contradicts the country’s Central Bank’s ban on cryptocurrency trading, which was enacted in May.
Tether’s status as the official currency is governed by privacy issues and the present regime’s confiscation of cash. The finance minister of NUG said that the stablecoin is being backed primarily to “facilitate and speed present commerce, services, and payment systems.”
In October 2021, the French Senate and European Parliament acknowledged the NUG as Myanmar’s formal government. The US has abstained from expressing a statement on the subject, and NUG’s decision to accept and utilise the stablecoin might spark a worldwide uproar. Particularly when the US government is attempting to enforce a rigid regulation on stablecoin supply.
Regulators have been putting pressure on Tether recently, and their focus went to his stockpile of business documents. Regulators are attempting to determine just what constitutes a company’s security. The goal is to verify that each USDT token is backed by $1 as claimed by the company.
Tether has revealed the composition of its overall reserves in recent months. Based on the facts presented, he looked to have more instruments than simply cash or cash equivalents. Bonds, secured loans, cryptocurrency, and business documents were also to be included.