The armed forces of Myanmar – which took control of the authority since the detainment of numerous elected leaders by force last year – is reportedly going to introduce a new digital currency to support the economy. 

Specifically, Major General Zaw Min Tun reportedly revealed that the introduction of a digital currency would “help improve financial activities in Myanmar”, but military members expressed an indecisive attitude towards whether to collaborate with local firms or utilizing their own resources to build the token. 

The digital currency reportedly has a primary target of offering facilitating features for payments within Myanmar, together with enhancing the economy.

Per a Jan. 25 report, the World Bank reportedly predicted that the nation’s economy will only experience a 1% growth through September this year, because of the impact caused by the pandemic, as well as the overthrow of the civilian authority. 

Reportedly, the growth of the economy was “around 30 percent smaller than it might have been in the absence of COVID-19 and the February 2021 coup.”

There is still an uncertainty of whether rolling out a digital currency – with no associations with the Central Bank of Myanmar, as per the report – would bring about any positive effect to the economy or incentivize residents to carry out purchases.

The central bank has previously disclosed that anyone in Myanmar found to have carried out trading of crypto assets could face jail time or fines, but this was prior to the military taking control.

“At this point, we are still learning about digital currencies and having discussions. We need to consider both pros and cons” Win Myint, director-general of the Central Bank of Myanmar’s currency-management department, additionally remarked.