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Myanmar National Unity Government officially recognizes Stablecoin as currency

The Aung San Suu Kyi led unofficial government of Myanmar makes a move on the recognition of Tether.

Myanmar
Photo by Perfect Lazy Bones / Envato

In Myanmar, a government led by people that are still faithful to Aung San Suu Kyi, who served as the former state counselor of Myanmar (de facto title for their ‘head of government’) has officially recognized Tether as an official currency. This report comes from Bloomberg.

The NUG or national Unity Government has reportedly announced this news today. Tether will now be for “domestic use to make it easy and speed up the current trade, services and payment systems,” said the NUG’s finance minister Tin Tun Naing.

The National Unity Government lost its power earlier this year in Feb ’21 once the military declared a one-year state emergency.

Back then, First Vice President Myint Swe then became the Acting President of Myanmar. He proceeded to hand power to Min Aung Hlaing, the Commander in Chief of Myanmar’s Defence Services. The NUG lost all power in government since that happened, and fails to control territory of any kind in the country.

The NUG declared war on the military government back in September, which led to escalations of violence across the country.

The acceptance of Tether made by the NUG stands as the latest in their attempts to reject political authority which was claimed by Myanmar’s military.

In May of 2020, the Mynamar Central Bank issued a decree that mentioned all digital currencies were illegal. Now, the NUG seeks to turn Tether into official currency to help fund their operations.

However, the NUG’s turn to the most popular stablecoin does bring with it calculated risk. Tether has been critiqued for months on end, regarding the lack of transparency about disclosing how they’re backed by the dollar.

The company’s made claims about how it can be redeemed in USD. Tether did release a breakdown of its reserves in May, revealing that less than 3% of Tethers were actually backed up by cash.

The Commodity Futures Trading Commission fined Tether for a total of $41 million back in October, for the alleged claim they made ‘untrue’ statements regarding the fiat-backed reserves.

This is far from the 1st time a country has moved towards crypto in an attempt to make it a legitimate currency in this manner, as El Salvador made Bitcoin a legal tender as well earlier this year. Though it is worth noting that it brought with it its own share of controversy and issues.

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