The attractive developing country of Myanmar could be on the verge of losing about $5.8 Billion in foreign direct investments following their anti-Bitcoin and other crypto-currencies stance.
Myanmar is hinting at a possible blackballing of Bitcoin, a crypto-currency that has been around for a decade today, which proposes the replacement of banks with a decentralized network of transaction validators and bookkeepers.
The Bitcoin economy has provided opportunities to people with limited access to global economies, but the Central Bank of Myanmar does not see it that way. According to the top bank in the country Bitcoin is more of a liability than an asset, with the bank stating that it does not recognize Bitcoin as money. The bank went as far as making it clear that no financial institutions in the country would be allowed to accept or facilitate crypto transactions.
Myanmar’s Bitcoin Binge
An MMTimes.com report showed that Myanmar investors have been stocking up pretty decently on Bitcoin. The report also showed that advertising for local Bitcoin exchanges had hit the roof, causing more and more citizens to develop a Bitcoin fever.
These developments have left the country’s top bank in panic mode fearing that huge capital would shift from Myanmar’s own markets and get stacked away in a market the country had no control over. The central bank has therefore gone on an anti-crypto campaign discouraging people from investing and using Bitcoin as well as other crypto-currencies.
A Myanmarese citizen like U Aung Aung who is an IT professional at a multinational company in Yangon revealed that people like him faced restrictions in banking due to their involvement with crypto. Aung admitted to have purchased $20 worth of Bitcoin back in 2017 after finding the crypto-currency great for global e-commerce. There are a lot of young people like him in Myanmar, who find crypto-currencies attractive, which has left the country’s top bank in a state of panic.
Myanmar Top bank next move?
What options does the central bank of Myanmar have when it comes to dealing with the rising crypto interest in the country? The bank could elect to go the Japan and Switzerland way; which is to accept crypto-currencies and make the country a hub for crypto investments, or go the India way; which is restrict cryptos and stifle their development in the country.
There is no telling whether the Myanmar top bank will relent on its stance on Bitcoin. What we do know is that the stance will derail investment in the country and discourage any startups from setting up shop over there.
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