TL; DR Breakdown
- Myanmar set to develop its CBDC
- The CBDC will alleviate poverty in the country
- Shadow government announces Tether as official legal tender
The idea of creating and developing a Central bank digital currency has been ongoing for as far long as time. Although China officially brought the idea to the fray, there have been many countries riding on the ongoing trend. While some are done, others are just brainstorming on how to create their CBDC. One such country is Myanmar, which plans to develop its digital currency very soon.
CBDC will alleviate poverty in Myanmar
The military government currently in charge of the affairs of Myanmar is hoping that the rollout of a digital currency would help the country. This was echoed by the leader of the armed forces Major General Zaw Min Tun, as reported by Bloomberg. Despite its reasons for creating the digital currency, the military was skeptical about involving companies inside Myanmar or carrying out the development independently.
Tun doubles as the leader and spokesperson of the military group and the leader of the media team. Aside from alleviating poverty in the country, the CBDC would be developed to help process large amounts of payments. A recent report claimed that Myanmar would undergo only a 1% growth due to the issues plaguing the country.
Shadow government announced Tether as legal tender
The country has suffered from issues bordering on the military takeover and the coronavirus pandemic’s massive impacts. Notably, the country’s growth rate was initially estimated to be just 30% more than what it is currently predicted to be without the pandemic. However, it is unclear if the group wants the central bank of Myanmar to be involved in the creation and if it would achieve the aim, they want it to achieve.
Before the military overthrew the government, the central bank of Myanmar was opposed to digital assets, proposing a rule that might see holders of the assets imprisoned or fined. One of the bank’s top executives mentioned that they were still studying the assets to see the advantages and disadvantages that they present in the long run. The Shadow government in place earlier announced that it would make Tether its official legal tender. Also, works are ongoing to topple the military in government across the country.