Digital currencies have emerged as a powerful tool in support of Myanmar’s Spring Revolution, which began following a military coup in February 2021, according to NUG Deputy Minister of Planning, Finance, and Investment Min Zayar Oo.
The National Unity Government (NUG), composed of members of Myanmar’s democratically elected government and other junta opponents, appointed Minister Min Zayar Oo.
However, centralized digital currencies can have a dual impact, as authoritarian regimes may attempt to exploit them for financial surveillance and censorship.
Aung Paing, an expert on digital currencies and the Strategic Partner Engagement Lead with the Independent Research Network (IRN), explained that the primary advantage for pro-democracy activists lies in the independence of digital currencies from government control. This independence allows individuals to discreetly support their chosen recipients without revealing their identities.
In response to the challenges posed by the junta-controlled banks, the NUG introduced its own digital currency, the Digital Myanmar Kyat (DMMK), last year. The NUG is also in the process of establishing an online bank, the Spring Development Bank, using digital currency to serve NUG supporters and the Myanmar diaspora.
DMMK is pegged one-to-one to the value of the Myanmar kyat, similar to stablecoins like Tether (USDT) pegged to the US dollar. DMMK is utilized locally and internationally through the NUGPay mobile wallet app. In June 2023, NUGPay reported that total transactions on the app had surpassed 300 billion kyats (approximately $150 million) one year after its launch.
Minister Min Zayar Oo confirmed that over 600 billion kyats (almost $300 million) have circulated through the DMMK system since its launch.
Digital currencies have become an important means for pro-democracy movements to circumvent authoritarian regimes’ controls. However, they can also empower those regimes, as highlighted by Win Ko Ko Aung, Human Rights Fellow at Bitcoin Policy Institute.
Privacy concerns have deterred countries like the United States from adopting centralized digital versions of their currencies. In contrast, China has embraced digital currencies to surveil individual transactions in a connected society.
Financial surveillance can exert substantial control over individuals’ lives, emphasized Chris Meserole, Director of the Brookings Artificial Intelligence and Emerging Technology Initiative.
However, he also pointed out that cryptocurrencies like Bitcoin offer an uncensorable messaging network. Safeguarding such technology is crucial for democratic regimes and institutions.
Digital currencies, including Bitcoin, are enabling individuals to circumvent totalitarian powers and fight for freedom, free speech, and democracy in their countries, according to Grant McCarty, Co-Executive Director of the Bitcoin Policy Institute.
Regarding the choice of DMMK over Bitcoin in Myanmar’s case, experts note that Bitcoin’s value can be highly volatile, making it less suitable for a government planning logistics for a revolution and supporting the people. DMMK offers a more stable value, facilitating the transfer of money for various purposes.
In a time of upheaval and struggle, DMMK has become a symbol of resilience, empowerment, and the unyielding spirit of those seeking change in Myanmar.
