Myanmar Provisional Government Adopts Cryptocurrency 'Tether' as Official Currency

(Photo by EPA)

[Asia Economy Reporter Yujin Cho] The interim government formed by the democratic forces after the Myanmar coup announced that it will officially recognize the cryptocurrency Tether as the official currency instead of the existing Kyat.

On the 13th, Tin Tun, Minister of Planning and Finance of the National Unity Government (NUG), the interim government of the democratic camp, made this announcement through a Facebook statement.

He explained, "NUG has officially approved the use of Tether within Myanmar to make current trade, services, and payment systems easier and faster."

Tether is a stablecoin designed to reduce the volatility of cryptocurrencies by pegging its value to existing fiat currencies such as the US dollar.

Foreign media reported that the official recognition of Tether as the official currency appears to be part of NUG's efforts to raise funds for its anti-military struggle and to bypass the military's control over the financial system.

Bloomberg stated, "It seems that NUG is focusing on cryptocurrencies like Tether, which can guarantee anonymity and avoid military surveillance."

The Myanmar military claimed that the general election last November was fraudulent and, after staging a coup on February 1, has been violently suppressing anti-military protesters.

NUG is a unified organization composed of civilian government officials and ethnic minority representatives ousted by the military coup in February this year. NUG established the People's Defense Force (PDF), an armed civilian organization, and has engaged in armed struggle. In September, it declared war against the military government, intensifying its fight.

To raise funds for the struggle, last month it issued bonds worth $6.3 million (approximately 7.4 billion KRW).

This content was produced with the assistance of AI translation services.