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- Military control over Myanmar turned out to be a success for the stablecoin Tether.
- Tether is now officially recognized for payments, announced by the Finance Minister through a Facebook post.
- How efficient Tether will prove as a tool to express opposition is something to look forward to.
There was a recent military takeover in Myanmar in response to which the National Unity Government, a democratic group, started promoting the use of a stablecoin, Tether. This was done in order to show opposition against military rule.
In a Facebook post, Tin Tun Naing, Finance Minister, announced the official recognition of Tether for payments. This revoked a notice from the Central bank in which they declared all the digital assets to be illegal, intimidating the violators of prosecution.
The military took over Myanmar in February 2021. And after the democratic parliament members that were elected in 2020 were left with no option, a National Unity Government(NUG) was formed. Some of these members are part of NUG now.
Tether is a stable coin pegged by the US Dollar. It provides an option to unregulated payments and as an alternative to kyat, the fiat currency of Myanmar. It might prove to be a robust tool against the military, which now has the power to issue the country’s fiat currency. The drop level of kyat was 1300 kyat to the US Dollar. And after the military took over the country, it fell down to 1800 kyat to the US Dollar.
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Bond Transaction with Tether
In November 2021, zero-interest bonds were issued by the NUG to finance its activities, which made it possible to use Tether for Bond’s Transactions. Initially, the Myanmar diaspora was offered to purchase the bonds that violated the counterterrorism laws according to the military.
When the military took over Myanmar, the civil servants and the bank employees refused to work, after which the people lined up outside the ATMs to withdraw cash.
What was the Dollar experiment:
In the previous year, Myanmar Dollar(MYD) was created by an anonymous group. Its goal was to give the citizens power over their assets without the interference of a centralized currency system. Out of which, forty-five percent was to be reserved for the NUG to finance new ventures and the rest was to be distributed to the citizens. But in December, it ended its operations, and the MYD’s website closed down. A local information tech expert commented on this failure and said that MYD did not succeed in building a market, and the citizens who promoted it didn’t receive the MYD.
The military takeover turned out to be a success for the stable coin Tether. Still, it will be interesting to see if Tether succeeds as an approach to show resistance towards the military. And how efficient this stable coin will prove as an official payment mode.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
