The NUG finance minister said using Tether would enhance trade speed and payment efficiency.
Myanmar’s shadow government, the National Unity Government (NUG), led by the supporters of jailed leader Aung San Suu Kyi, has declared United States dollar-based stablecoin Tether (USDT) as an official currency for local use.
Per a report published in Bloomberg, the NUG will accept Tether for its ongoing fundraising campaign seeking to topple the current military regime in Myanmar. The shadow government also raised $9.5 million through the sale of “Spring Revolution Special Treasury Bonds” offered to the Myanmar diaspora across the world. The group aims to raise $1 billion through the sale of NUG-issued bonds.
The NUG Ministry of Planning, Finance, and Investment posted an announcement regarding the move on Facebook on Monday.
The NUG’s decision to make Tether an official currency undermines the crypto ban imposed by the Central Bank of Myanmar in May last year.
The incorporation of Tether as an official currency for local use is prompted by privacy concerns and the seizing of funds by the current regime. The NUG finance minister said the primary reason behind Tether’s incorporation is “domestic use to make it easy and speed up the current trade, services, and payment systems.”
The NUG was recognized as the official government of Myanmar by the French Senate and the European parliament in October 2021; however, the United States hasn’t made any move in this direction. The NUG’s decision to accept and use Tether stablecoin could become a point of discussion among nations, especially at a time when the U.S. government is looking to impose strict stablecoin issuance policies.