According to Bloomberg, Myanmar’s military is preparing to launch its own digital currency in the area to improve its economic growth. A top spokesman at the State Administration Council said that the country is now assessing how to go ahead with the digital currency launch.
The debut of its digital currency will be geared at facilitating domestic payments.
“We are unclear whether we should accomplish it as a joint venture with local firms or by the government alone.”Deputy Minister of Information Major General Zaw Min Tun
However, Major General Min Tun subsequently commented that the digital currency introduction would actively contribute to encouraging financial operations in the country. “A digital currency can assist boost financial activity in Myanmar.” Min Tun subsequently added.
Myanmar and their decision with crypto
Myanmar’s military government had unveiled a cyber security bill that would restrict the use of virtual private networks under punishment of jail and penalties as per the reports by the register.
The draft law, dated January 13, is signed by Soe Thein, permanent secretary of the military’s transport and communications ministry. It is undergoing a request for opinions through January 28. Upon implementation, it will condemn VPN users to between one and three years imprisonment and fines of up to five million Myanmar Kyats ($2,800).
The bill also forbids the use of digital money, under penalty of jail for six months to a year, and the same punishment used to prevent VPN usage.
Myanmar’s GDP plummets
According to the projections presented by the World Bank, Myanmar’s GDP dropped by 18 percent in the fiscal year ending in September 2021. The World Bank research also forecasted that the nation would enjoy barely 1 percent economic growth in the fiscal year ending in September this year.
Earlier in December, the National Unity Government (NUG) had formally recognized Tether as the official currency of the area to make domestic transfers more straightforward and compact. NUG has repeated similar comments before, claiming that Tether, as the official currency, will assist speed up the general business, services, and payments.
Myanmar military and other decisions regarding virtual assets are unclear. Earlier, they proposed banning cryptocurrencies, and now they are in talks of launching their digital currency. Countries including India are also planning to launch their digital currency. Sometimes the governments forget that the entire concept of cryptocurrencies is on the reality that it is decentralized.