Burmese government ousted from NUG proclaims Tether (USDT) as its official currency

A military coup has been at work in an attempt to overthrow Myanmar’s presidential government since February 2021, but elected officials are still working as a shadow government in an attempt to retain some semblance of power. The latest move by the elected National Unity Government (NUG) to boost support was to announce the Stablecoin Tether (USDT) as the country’s official currency.

USDT / USD

The military government seized power earlier this year, violently cracking down on peaceful protests and overthrowing elected government officials, chasing them in the shadows. The army holds power in the country, but NUG officials are still trying to return to their old positions.

Will the announcement matter?

A few governments around the world have started to officially adopt cryptocurrency as a national currency or to legitimize it alongside a national fiat currency. El Salvador’s attempts to make Bitcoin one of its official currencies have failed spectacularly, and the government’s plans to stimulate the economy by making it a haven for Bitcoin mining have failed. .

Myanmar’s ousted government making a similar announcement with Tether carries even less weight. At this point, the proclamation appears to be a desperate attempt to stay relevant and gain supporters as the chances of NUG regaining power will be very slim in any way. The military-led government sentenced NUG chief Aung San Suu Kyi to detention days earlier, making this current cryptocurrency announcement even more desperate than it would have been last month.

Why Tether?

Tether has been the subject of much controversy over the past year, but it is still the number one ranked stablecoin among cryptocurrencies. Despite government fines, federal investigations, and numerous scandals, Tether has managed this year to continue to perform well, and it is still viewed as a good investment at this point.

Of course, Tether is pegged to the US dollar, with its value following just behind movements in the US dollar and ideally enjoying a one-to-one ratio with the world’s most traded fiat currency. Tether’s website claims that this cryptocurrency has returned 100% in US dollars, some of which can be found in certificates of deposit and treasury bills. Tether’s holdings were disclosed in detail recently following an investigation into allegations that not all Tether tokens were backed as advertised.

About $ 7.2 billion worth of Tether coins come from cash, although the provenance of that money and the country it is based in has not been fully disclosed. Tether had $ 69 billion in assets at the time of the investigation, including about $ 30.6 billion in commercial paper and $ 3.5 billion in secured loans. Some of it is held in precious metals, funds and corporate bonds, as well as other types of holdings.

Despite these new details, Tether continued to be traded frequently and in high volumes, and it has not lost its rank among cryptocurrencies or the top spot among stablecoins.

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