Myanmar will have its own Central Bank Digital Currency (CBDC) to make retail payments efficiently and in real time.
The adoption of blockchain technology is currently in full trend. Central banks in almost every country are conducting research or development to modernize their traditional payment systems. There are about 90 countries with central banks working on CBDC development and more than 10 countries in the pilot phase.
On February 4, Bloomberg released a report on Myanmar's efforts to develop and launch its own CBDC. According to the report, Burma hopes to boost its economy through progress.
The Myanmar military believes that CBDCs will help strengthen the country's economy and will be better positioned in the global financial markets. They also aim to adopt better payment methods for domestic and retail payments.
Maj. Gen. Zaw Min Tun, deputy minister of information, said the government is unsure whether it should work with local companies to bring in CBDCs or whether it should do everything alone.
“We haven’t decided if we should do a joint venture with a local company or if the government should do it alone.”
The Major General further noted that the adoption of digital currency will facilitate the country's financial activities with greater efficiency.
“Digital currency will help improve financial activities in Myanmar.”
Based on available records and data, in September 2021, the country's financial economy faced an 18% contraction in the current fiscal year.
Last December, the National Unity Government (NUG) recognized Tether, a stable currency pegged to the U.S. dollar, as a legitimate and better payment instrument. Prior to this decision, the NUG stated that Tether (USDT) would help the country facilitate general transactions, services and payments.
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