Myanmar Democratic Camp Designates Cryptocurrency Tether as Official Currency

[Image source=Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Myanmar's pro-democracy camp has approved the cryptocurrency Tether as an official currency. The goal is to raise $1 billion (approximately 1.19 trillion KRW) through bond issuance to fund efforts against the military junta following the coup.

According to local independent media Mizzima on the 14th, the National Unity Government (NUG), the interim government of the anti-military pro-democracy camp, announced that it will replace the existing Kyat currency with Tether as the official currency. According to Bloomberg, Tin Tun Naing, Minister of Planning, Finance and Investment of the NUG, stated on Facebook, "The NUG has officially approved the use of Tether within Myanmar to make current trade, services, and payment systems easier and faster."

Tether is one of the 'stablecoins' designed to minimize price volatility, created to reduce the volatility of existing cryptocurrencies by pegging its value to traditional fiat currencies such as the US dollar.

The approval of Tether as an official currency appears to be related to the NUG's efforts to raise funds for its anti-military struggle. The NUG stated, "The proceeds from bond issuance will be used for the revolution against the military regime."

On the 22nd of last month, the NUG issued four types of bonds with two-year maturities, denominated in $100, $500, $1,000, and $5,000. Bloomberg explained, "The NUG seems to be focusing on cryptocurrencies like Tether, which can guarantee anonymity through P2P (peer-to-peer) transactions, avoiding surveillance by the military."

Since the military coup on February 1st, Myanmar's military has violently suppressed anti-junta protesters. The NUG, formed in April with ousted civilian government officials and ethnic minority representatives, established the People's Defense Force (PDF), an armed civilian militia, and declared war against the military regime in September.

The Myanmar military regime has labeled the NUG as a "terrorist group" and warned, "Providing funds to such groups may result in severe penalties, including long-term imprisonment."

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