Myanmar government plans to introduce digital currency to boost its economy

According to Bloomberg, Myanmar’s military government is planning to introduce its own digital currency in the region to bolster its economic prosperity.

As sources report, a top spokesperson at the State Administration Council shared that the country is currently evaluating how to move forward with the digital currency launch.

Myanmar mulls over launching its own digital currency

In a bid to strengthen the economic prospects of the country, the military government of Myanmar is considering launching its own digital currency, which will be aimed at supporting domestic payments. 

The Deputy Minister of Information Major General Zaw Min Tun further stated that the Junta is undecided whether they should collaborate with local companies to launch its digital currency initiative.  

“We are undecided whether we should do it as a joint venture with local companies or by the government alone.” 

However, Major General Min Tun later opined that the digital currency launch will actively help in stimulating financial activities in the country. 

“A digital currency will help improve financial activities in Myanmar.” Min Tun later added 

According to the estimates outlined by the World Bank, Myanmar’s economy shrank by  18% in the fiscal year ending in September 2021. The World Bank report also predicted that the nation will experience only 1% of growth in the fiscal year ending in September this year. 

The bank further concluded that the region’s economic prospects could have been better if it wouldn’t have experienced such stark circumstances involving a military coup and encountering the Covid-19 pandemic. 

Earlier in December, the National Unity Government (NUG) had officially recognized Tether as the official currency of the region to make domestic payments more simple and compact. NUG had reiterated similar sentiments earlier, stating that Tether as the official currency, will help speed up the general trading, services, and payments in the country. 

Myanmar is not the only nation that is actively contemplating the launch of its independent digital currency. Earlier, leading nations such as China and India have already started exploring digital currencies to strengthen their financial services and have laid out comprehensive plans to establish digital currency infrastructure in their respective regions.