The parallel government led by supporters of former Myanmar ruler Aung San Suu Kyi has launched a campaign to bring down the military regime. Following that, the parallel government legitimized Tether as a local currency after raising funds to achieve the goal.
Tether’s Official Use
On Sunday, Finance Minister Tin Tun Naing announced on Facebook that: The National Unity Government has officially embraced Tether, a cryptocurrency designed to mimic the US dollar, for “domestic use to make it easier and speed up existing trade, service and payment systems.” Consequently, NUG provided no further information.
In Myanmar, the NUG is an organization of former regime officials and pro-democracy activists. The group doesn’t have control over territory or positions of power in Myanmar. They are not active in an official capacity and do not dominate Burma.
However, in September, the organization declared war against the junta, subsequently increasing fights between government troops and local resistance groups.
The country’s shadow government’s embrace of cryptocurrency demonstrates its resistance to the Myanmar Central Bank. In May of last year, the Central Bank of Myanmar prohibited all digital currencies, warning that anybody caught using them would be jailed and fined.
Global Cryptocurrency Adoption and NUG Crypto Strategy
The group chose Tether since it is guaranteed by one dollar and is recognized as a stablecoin. The decision by NUG follows similar moves in other nations that are looking at the potential advantages of government-issued cryptocurrency. Governments may do this by adopting or developing cryptocurrencies or stablecoins as a component of their financial system.
On September 7th, the government of El Salvador pioneered the legalization of digital currencies. El Salvador made Bitcoin a legal currency, and other nations have been following in its footsteps since then. However, so far, its most significant test has been its usefulness as a medium of exchange in trade and investments.
Additionally, the NUG is interested in blockchain technologies and decentralized finance aspects. The organization raised $9.5 million in the first 24 hours after selling what has been advertised as the “Spring Revolution Special Treasury Bonds.” The bond is designed like a direct lending instrument.
Following its success, the sale was held for a week after December 6th. Additionally, the NUG intends to have representatives in other nations assisting with the bond sales. The NUG also intends to sell the bonds all over Myanmar.
The group concentrates on cryptocurrencies like Tether, which can be exchanged in peer-to-peer markets and provide users more anonymity. However, the dollar-pegged stablecoin has been at the center of debate for years that it was not as good as claimed.