Bitcoin in Myanmar no more after the Central Bank of Myanmar announced that it doesn’t recognize bitcoin as money. Following the coming altcoin news, CBM considers the number one cryptocurrency as a liability rather than an opportunity.
Myanmar is a developing country that is now considering shutting its doors down for bitcoin merely because it poses a threat to the central bank. Bitcoin proposes to replace banks with an improved decentralized network of transaction validators. This means that everyone with an internet connection can join the bitcoin economy and participate in global economies.
But, the Central Bank of Myanmar stated previously that it would not allow Myanmarese Financial Institutions to accept or to facilitate transactions conducted with Bitcoin. The same rule applies to all other cryptocurrencies with similar properties.
According to reports, Myanmarese investors are increasing their stakes in bitcoin despite the bad news. Local ads for bitcoin exchanges are still increasing and this shows that more people are looking to hop on the bitcoin bandwagon. CBM fears that this process can flush out a large part of the capital from Myanmar’s market to the industry in other countries which is the main reason why the bank is discouraging people from investing and therefore to make no more bitcoin available in the country.
An IT professional Aung Aung who works at the Yangon Company pointed out for the latest cryptocurrency news that the people in the country face a lot of restrictions on banking. He admitted that he purchased about $20 worth of BTC in 2017 since he found that the cryptocurrency is perfect for conducting flawless ‘’global e-commerce and aid.’’
There are thousands of people in Myanmar who got into bitcoin for the same reasons Aung did. The bitcoin frenzy began in 2017 when the market valuation jumped up to $313.89 billion which five times more than the current GDP of Myanmar. The downside correction in 2018 brought the rates of Bitcoin to go down by 85 percent. The market now stands close to the $144 billion and there is a huge interest from institutional players.
CBM now has two options: restrict people from investing in bitcoin or make Myanmar the perfect crypto-hub such as Japan or Switzerland. The chief executive of the digital commerce platform Get Myanmar pointed out:
“Before making crypto illegal, its impact on the local currency and compatibility with existing policies should first be analyzed and discussed.’’
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