Myanmar: NU Government officially accepts Tether cryptocurrency

Myanmar’s shadow government has allowed the use of world’s largest cryptocurrency called Tether.

Key Points

• Tether Cryptocurrency will be used as an official currency.
• This move will make it easier to raise funds and make payments.

Background

The National Unity Government (NUG) comprises of pro-democracy groups and some members from Myanmar’s civilian administration, which was overthrown in a military coup recently. The NUG has been working to raise funds for its revolution of toppling the ruling military government in Myanmar. In the other move, the Military government has outlawed and designated NUG as a terrorist.

About Tether

Tether is a cryptocurrency, which is hosted on the Ethereum blockchain. Its tokens are issued by Tether Limited. Tether limited is controlled by owners of Bitfinex. Tether is called a stablecoin, since it was originally designed to always be worth US$1 and maintain $1.00 in reserves. It can be transferred in a similar way as cryptocurrencies such as Bitcoin. Thus, it becomes difficult for governments and other authorities to track or prevent payments.

Market Value of Tether

Market value of Tether is $76bn.

Controversy surrounding Tether

Tether Limited as well as Tether cryptocurrency are controversial because of alleged role of Tether Limited in manipulating the price of Bitcoin, and its failure to provide a promised audit on adequate reserves backing the Tether token.

About Cryptocurrency

Cryptocurrency is a collection of binary data, working as a medium of exchange. Cryptocurrency are not found in physical form like paper money. It is typically not issued by a central authority. It usually uses decentralized control, as opposed to central bank digital currency (CBDC). It is a tradable digital asset or digital money.  Bitcoin was the first decentralized cryptocurrency, which was released in 2009. Bitcoin was invented in 2008.

Month: Current Affairs - December, 2021