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Tether recognized as official currency in Myanmar

  • Anti-Junta Groups accept Tether for domestic use and fundraising. 
  • Tether's acceptance speeds up trade, services, and payment systems fundraising campaigns. 
  • Tether was chosen to allow users more privacy despite regulatory concerns surrounding the stablecoin. 

Despite being shrouded in controversy and regulatory concerns, Tether has emerged as the official currency of the shadow government in Myanmar. This has given a boost to Tether's acceptance and utility. 

Shadow government of Myanmar accepts Tether 

Myanmar's shadow government, one under the leadership of the ousted leader Aung San Suu Kyi, has recognized Tether as an official currency. The government now accepts funds in Tether and uses the stablecoin to fund its operations. 

NUG is an alliance of leaders from the ousted government and groups that favor democracy. Tin Tun Naing, NUG Finance Minister said, Tether is used for, 

domestic use to make it easy and speed up the current trade, services and payment systems.

In 2020, the Central Bank of Myanmar had declared cryptocurrencies illegal. The NUG's use of Tether is considered an act of defiance against the Central Bank.

The stablecoin, Tether, has remained shrouded in controversy for its reserves. Regulators have intervened and investigated Tether's claims of one to one backing for each token issued, to no avail. 

Despite being surrounded by speculation and controversy, Tether was accepted as the official currency of the shadow government, boosting its adoption. 

Proponents consider Tether a risk to the cryptocurrency ecosystem, and regulators have criticized the stablecoin citing that its collapse could trigger a massive financial crisis. Tether's market capitalization is $77.2 billion, and its the fourth-largest cryptocurrency by market capitalization. 

Myanmar's ousted government leaders chose Tether as it can easily be exchanged on peer-to-peer venues, it offers higher privacy to users. Though it is the center of speculation, it is considered the gateway to cryptocurrency for new traders and investors. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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