By : An emerging economy which to attract $5.8 billion worth of Foreign Direct Investments is belittling its goals with an anti-technology stance.
Myanmar is the latest developing country that is hinting to shut doors in the face of , a decade-old global which proposes to replace banks with a decentralized network of transaction validators and bookkeepers. Anybody with a decent internet connection can participate in the economy, which further makes it an attractive asset for people with limited gateways to participate in global economies.
Myanmar Could See Powering its Stock Markets
— CCN.com (@CCNMarkets)
But, to the Central Bank of Myanmar (CBM), is more a liability than an opportunity. The central bank earlier this month announced that it does not recognize as money, stating that it would not allow Myanmarese financial institutions to accept or facilitate its transactions. The same ruling applied to having properties as that of .
bitcoin Adoption Booming in Myanmar
MMTimes.com that Myanmarese investors have been increasing their stakes in and similar lately. Local advertising for exchanges on social media is at its peak, which is prompting more people to board the bandwagon. CBM fears that the process might shift a considerable capital from Myanmar’s own markets to an industry that is not theirs, which is why the central bank is discouraging people from investing in or using and similar .
U Aung Aung, an IT professional working at a multination company in Yangon, told MMTimes that Myanmarese people like him face huge restriction on banking. He admitted purchasing some $20 worth of back in 2017 after finding the appealing for conducting flawless ‘global e-commerce and aid.”
There are millions of people like Aung in the world that have entered the economy for its underlying technological potential. The frenzy went to its peak during December 2017, when the market valuation jumped to as high as $313.89 billion, almost five times the current GDP of Myanmar. A massive downside correction in 2018 brought the rates almost 85-percent down. Nevertheless, the market now stands near $144 billion owing to an in first-tier countries like the US, Singapore, , and Switzerland.
The Choice Between Doing an India or a Japan
CBM is now left with two options: either it can restrict people from investing in like the did, or it can take a proactive approach like or Switzerland to make Myanmar a global hub for -related developments.
U Nyein Chan Soe Win, the chief executive of digital commerce platform Get Myanmar, CBM does not have constitutional backing to announce an outright ban on . It is likely for the lawmakers to first define in legal books before pursuing action against or in favor of the .
“Before making crypto illegal, its impact on the local currency and compatibility with existing policies should first be analyzed and discussed,” he told MMTimes.com.
Published at Mon, 20 May 2019 09:13:28 +0000