The military force in Myanmar, who have controlled the government since forcibly detaining several elected officials in 2021, is apparently going to issue a digital currency to aid the local economy.
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 would 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.
Myanmar aims to boost financial activities through CBDC
According to a Bloomberg story published on Thursday, Major General Zaw Min Tun claimed that launching a digital currency would “help improve financial activities 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 spokesperson.
It’s unclear whether launching a digital currency — the report makes no mention of any collaboration with Myanmar’s Central Bank — will help the economy or inspire locals to buy. The central bank had previously stated that anyone who is found digital trading assets in Myanmar might face imprisonment or a fine, but this was before the military took control.
“We’re still learning about digital currencies and having discussions,” Win Myint, director-general of Myanmar’s Central Bank’s currency-management department, said.
“We need to consider both pros and cons.”
In December, the country’s shadow government, backed by supporters of jailed state counselor Aung San Suu Kyi, declared Tether (USDT) to be an official currency. As reports of war crimes surface, the group continues to raise funds in order to overthrow the military administration.