Myanmar’s shadow government, the National Unity Government (NUG), led by supporters of the now incarcerated leader Aung San Suu Kyi, has recently declared that the US-based Tether (USDT) stablecoin is now an official currency for local use.
Tether, or USDT, is a stablecoin – which means its value is linked to that of the dollar, thus the value of 1 USDT should always be equal to that of 1 USD. The price of USDT should not fluctuate at all, or, at the very least, much less than other cryptocurrencies out there such as BTC or ETH. There are numerous stablecoins already, such as USDT, USDC, BUSD (Binance’s version of a stablecoin), and many others. You can check out a full list here: https://coinmarketcap.com/view/stablecoin
USDT has been the subject of multiple controversies throughout its years of existence, regarding whether it’s fully backed by reserves or not, with some crypto enthusiasts opting for USDC or other alternatives – yet however, USDT is perhaps the most used stablecoin, with a huge market cap of around $76 billion at the time of writing this article.
According to a report published in Bloomberg, the National Unity Government will start to accept Tether for its ongoing fundraising campaign, which aims to overthrow the current military regime in Myanmar. The shadow government has also raised an astonishing amount of $9.5 million by selling the “Spring Revolution Special Treasury Bonds” to the Myanmar diaspora from all around the world. The group is aiming to raise $1 billion by selling bonds issued by NUG, according to cointelegraph.com
The NUG Ministry of Planning, Finance, and Investment have posted an announcement on their Facebook page on Monday.
The NUG’s decision to make Tether an official currency undermines the cryptocurrency ban imposed by the Central Bank of Myanmar, which happened last May.
The incorporation of Tether as the official currency for local use has been mostly driven by various concerns about the confidentiality and confiscation of funds practiced by the current regime. The National Unity Government finance minister said the main reason behind Tether’s incorporation was “domestic use to make it easy and speed up the current trade, services, and payment systems”.
The National Unity Government was recognized as the official government of Myanmar by the French Senate and the European Parliament in October 2021; however, the United States has not taken any action in this direction as of yet. The NUG’s decision to accept and use the stable currency Tether could become a point of discussion between various nations, especially at a time when the US government is trying to impose strict policies on issuing stable cryptocurrencies.
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