Myanmar's Shadow Government, NUG, Uses Tether As A Local Payment Tool

USDT Tether is used as a local means of payment by NUG Myanmar. (photo: bitcoin.com)

JAKARTA – Myanmar's shadow government, the Government of National Unity (NUG), led by supporters of now-imprisoned Myanmar leader Aung San Suu Kyi, has declared the US dollar-based stablecoin Tether (USDT) the official currency for local use.

According to a report published in Bloomberg, the NUG will receive Tether for their ongoing fundraising campaign in their quest to overthrow the military regime currently in power in Myanmar.

The shadow government has also raised $9.5 million through the sale of “Spring Revolution Special Treasury Bonds” offered to the Myanmar diaspora worldwide. The group aims to raise USD 1 billion (IDR 14.3 trillion) through the sale of bonds issued by NUG.

The NUG Ministry of Planning, Finance, and Investment posted an announcement about the move on Facebook on Monday.

According to a Cointelegraph report, NUG's decision to make Tether their official currency has bumped into a ban on the use of cryptocurrencies imposed by the Central Bank of Myanmar in May last year.

The incorporation of Tether as the official currency for local use was prompted by privacy concerns and the seizure of funds by the current Myanmar military regime. NUG's Finance Minister said the main reason behind Tether's incorporation was "domestic use to facilitate and expedite current trade, services, and payment systems."

The NUG was recognized as the official government of Myanmar by the French Senate and the European Union Parliament in October 2021. However, the United States has not made any steps in this direction. NUG's decision to accept and use the Tether stablecoin could be a topic of discussion among countries, especially at a time when the US government wants to enforce a strict stablecoin issuance policy.