The Central Bank Of Myanmar Seeks To Shun Bitcoin as Crypto Adoption Grows at Rapid Pace
Myanmar, a small developing country tucked in the western side of Southern Asia is showing signs of ignoring the bitcoin craze that has been on since its development. Since bitcoin is built on a concept that could entirely do away with banks if adopted due to its decentralization aspect, central banks are a little terrified of this cryptocurrency. Anyone that can access internet can join the bitcoin community, which makes it more enticing to people who have few options of investing in their countries.
However, according to the central bank of Myanmar, Bitcoin seems like a liability as opposed to the opportunity people think it actually is. Earlier in the month, the central bank declared that it doesn’t acknowledge bitcoin as a form of payment and that it will not allow any licensed financial organizations in the country to accept bitcoin as a form of payment either. These same rules will also be applied on any other cryptocurrencies that have similar characteristics to bitcoin.
Bitcoin uptake on Myanmar
According to reports by MMTimes.com, there has been an increase in the number of investors willing to risk in bitcoin investment as well as other similar cryptocurrencies. There is huge spike on adverts that promote bitcoin platforms encouraging more people to join the bitcoin frenzy. The central bank of Maynmar is now afraid that so much capital may shift from the economy to an economy they absolutely have no control over. This is the main reason the central bank is now trying to dissuade people from sinking their money into bitcoin and any other cryptocurrencies.
Speaking to MMTimes.com, U Aung, a young IT professional with a global firm in one of the cities in Myanmar said that young people like him were facing huge obstacles in the banking industry. He said that he had bought some bitcoin earlier in 2017 when he had realized that the currency was great when it comes to carrying out international transactions.
Like Aung, there are so many other people out there who have invested in cryptocurrency due to the technology behind it. Huge numbers of people joined the bitcoin community back in Dec 2017 when the price of bitcoin went past the $20000 mark. However, in 2018, there was a major price correction that brought down the price of bitcoin to USD. Nevertheless, there has been an upward price movement in the recent months.
Will Myanmar take the Indian or Japanese route?
The central bank of Myanmar has two choices; to either completely ban all cryptocurrency activities just like the Indian Reserve bank or to take the Japanese path of putting up great policies that encourage their people to invest in bitcoin and any other cryptocurrencies.
However, as it stands right now, the central bank of Myanmar doesn’t have any constitutional rights to completely ban bitcoin and cryptocurrencies. Lawmakers will first need to explain bitcoin in the law books before they can take any further action on cryptocurrencies in the country.