JAKARTA - The Myanmar Armed Forces have controlled the country's government in a coup several years ago. They also forcibly detained many leaders who were elected in 2021. Now the Myanmar Military Junta, is reportedly planning to release a digital currency to help the local economy.
According to a Thursday, February 3 report from Bloomberg, Major General Zaw Min Tun, who acts as the spokesman for the Myanmar army, said it would launch a digital currency. "This will help increase financial activities in Myanmar," Min Tun said as quoted by Bloomberg. However, military officials are undecided whether they will cooperate with local companies or release the tokens themselves.
The digital currency is aimed at supporting payments in Myanmar as well as boosting the economy. According to a January 25 report, the World Bank predicts that the country's economy will grow only 1% through September 2022 due to the effects of the pandemic and the overthrow of the civilian government.
However, it is not clear whether introducing a digital currency will positively boost the economy or encourage residents to make purchases. The central bank had previously announced that anyone in Myanmar found to have traded digital assets could be jailed or fined, but this was before the military took control.
“At this point, we are still studying digital currencies and having discussions,” said Win Myint, director general of the currency management department of the Central Bank of Myanmar, as quoted by Cointelegraph. "We need to weigh the pros and cons."
The country's shadow government, led by backers of detained state adviser Aung San Suu Kyi, announced in December that it would recognize Tether (USDT) as the official currency. The group continues to raise funds to overthrow the military government as reports of war crimes circulate.
If later issued by its central bank, Myanmar's digital currency will be one of the few to be launched worldwide. China currently allows foreign athletes visiting for the 2022 Beijing Winter Olympics to send and receive their digital yuan. The Bahamas was the first country to launch a central bank digital currency in October 2020.
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