Myanmar’s shadow government, the National Unity Government (NUG) has announced that it has adopted the stablecoin Tether (USDT) as the official currency.
NUG Announces Tether Currency
NUG’s finance minister Tin Tun Naing announced via a Facebook post on Sunday that the stablecoin, which is meant to be a dollar proxy, will enable the shadow government to speed up current trade, services, and payment systems and effectively help them overthrow the current military government.
The NUG consists of supporters of ousted leader Aung San Suu Kyi, pro-democracy groups, and remnants of Myanmar’s civilian administration that was overthrown in a military coup earlier this year. It has announced the adoption of Tether to fund a ‘revolution’ against the military government. In May last year, the Central Bank of Myanmar, which is under military control, declared all digital currencies illegal in the country, with threats of imprisonment and fines to any violators. With the shadow government adopting the Tether coin, it further emphasizes its opposition against the central bank and the military rule in Myanmar.
NUG Raises Funds Amidst Financial Turmoil
The military coup has largely destabilized the country’s financial system. Opposition groups have been appealing to the masses not to pay taxes, join civil disobedience campaigns, and boycott military-linked businesses and the national lottery. Because of this, a shortage of funds has plagued the country’s banks. The value of the local currency, the kyat, has dropped by more than 60%.
On the other hand, the NUG has been cut off from accessing the government funds and had to resort to raising money in alternative ways. Initially, the NUG raised $9.5 million after selling Spring Revolution Special Treasury Bonds to citizens who are living abroad. The use of the Tether stablecoin will allow the NUG to privately fund its campaign to overthrow the military regime and avoid being traced.
Tether To Fund Regime Overthrow
Since Tether is a stablecoin, it will be backed by the US dollar and will stay remain consistent, unlike cryptos like BTC or ETH, whose prices fluctuate constantly. Therefore, the NUG is likely hoping that its unstable financial condition will be somewhat stabilized with the help of the USDT as well as provide an untraceable payment channel. However, several controversies have been associated with the Tether stablecoin that indicate that it might not be truly backed one-to-one with dollars as claimed.
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