National Unity Government (NUG) in Myanmar will approve the tether as the official currency. This is partly to address the problem of funds being seized by the ruling military regime.
Myanmar’s National Unity Government (NUG), which brings together supporters of jailed Aung San Suu Kyi, has announced that the tether will become the country’s official currency. It’s part of a fundraising campaign to overthrow the military regime in Myanmar.
The NUG has so far raised $9.5 million through the sale of “special spring revolution treasury bonds”, which can be purchased by all members of the Burmese community worldwide. The government’s intention is to raise $1 billion.
Tether (USDT) as a tool against the regime
On Monday, an official announcement from the Ministry of Planning, Finance and Investment NUG, appeared on Facebook, which stated the intention to raise $ 1 billion by trading the aforementioned bonds. The introduction of stablecoin USDT into circulation is intended to prevent the ruling regime in Myanmar from seizing the funds raised.
The NUG Finance Minister has justified this decision based on the need to improve current trade, services, and payment systems. Significantly, the recognition of USDT as an official currency is in clear violation of the ban on cryptocurrencies imposed by the Central Bank of Burma in May 2020.
Tether under pressure from US regulators
In October 2021. NUG was recognised by the French Senate and European Parliament as the official government of Myanmar. The decision to use stablecoin to fight the regime is likely to spark an international debate over this controversial move. All the more so as the US is increasingly tightening its stablecoin issuance policy.
Recall that Tether has come under the magnifying glass of US regulators, who are trying to verify that each USDT token is actually backed by $1. The company recently revealed the composition of its total reserves. It turned out that this included not only cash and cash equivalents, but also bonds, secured loans and commercial paper. If the words of the company’s general counsel, Stuart Hoegner, are to be believed, the company plans to conduct a thorough audit in the coming months.