Myanmar’s armed forces, who have been in control of the government since detaining numerous elected leaders violently in 2021, are reportedly planning to establish a digital currency to help the local economy.
According to a Bloomberg storey published on Thursday, Major General Zaw Min Tun claimed that launching a digital currency would “help boost financial activity in Myanmar,” but military officials were unclear about whether to collaborate with local businesses or go it alone. Tun, the head of the military government’s “True News Information Team,” serves as the Myanmar army’s spokeswoman.
The digital currency is intended to help Myanmar’s economy by facilitating payments within the country. Due to the consequences of the epidemic and the overthrow of the civilian administration, the World Bank anticipated that the country’s GDP will grow by only 1% through September 2022, according to a report released on Jan. 25. According to reports, economic growth was “about 30% lower than it may have been in the absence of COVID-19 and the February 2021 coup.”
It’s unclear whether introducing a digital currency will benefit the economy or encourage residents to spend. The article makes no mention of any engagement with Myanmar’s Central Bank. Before the military took over, the central bank had declared that anyone caught dealing digital assets in Myanmar may face imprisonment or a fine.
Both advantages and disadvantages certainly need evaluation
Win Myint, director-general of Myanmar’s Central Bank’s currency-management department, said, “We are still studying about digital currencies and holding conversations”. “Both advantages and disadvantages certainly need evaluation.”
Tether (USDT) will be recognised as an official currency, according to the country’s shadow government. Which is led by supporters of incarcerated state counsellor Aung San Suu Kyi. The organisation continues to collect money. In an attempt to destabilise the military administration, even as allegations of war crimes appear.
Myanmar’s digital currency, if issued by the central bank, would be one of the first in the world. Athletes competing in the 2022 Winter Olympics in Beijing presently allowed to send and receive digital yuan from China. The Bahamas became the first country to launch a digital currency from its central bank in October 2020.