This is an op-ed by Win Ko Ko Aung, McCourt Fellow in Georgetown University’s Data Science for Public Policy program and survivor of the 2021 military coup in Myanmar.
At the start of the 2024 US presidential election campaign, one of the candidates, Robert F. Kennedy Jr., took to Twitter to voice his support for Bitcoin. In a tweethe stated that “Bitcoin has been a lifeline for the movement of people across the world, especially in Burma.”
Burma, also known as Burma, is a country located in Southeast Asia, bordering China, India, Thailand, Laos and Bangladesh. The country has stunning natural beauty, including unspoiled beaches, vast forests and a rich Buddhist culture. Despite these attractions, Myanmar has been tortured by the longest civil war in the worldwhich has lasted for more than 70 years, since it has reached independence in 1945. The country has also experienced multiple military coups throughout its history, leading to political instability and economic turmoil. Moreover, the the government has a habit of demonetizing the local currencyand there were frequent banking crises.
One of the most notable instances of Myanmar’s demonetization occurred in 1987, leading to the historic “8888 uprising”. On September 5, 1987, military dictator Ne Win announced the demonetization of Myanmar’s 25, 35 and 75 kyat banknotes without notice or replacement for citizens. At that time, these notes represented 80% of circulation in the economy. Earlier demonetization efforts in 1964 and 1985 compensated the noteholders, making this 1987 decision particularly unexpected and devastating for the people of Myanmar. The choice to demonetize these peculiar and strange denominations has given rise to significant speculation, as they were supposed to hold a special status. It is widely believed that Win, who was very superstitious, saw these numbers as auspicious both for the country and for himself on a personal level.
Myanmar’s era of transformation began with the US President Barack Obama’s visit to the country in 2012followed by sound first civilian election in 2015, which marked an important step in the country’s path to democracy. However, the 2021 Myanmar military coup set the country back a decade. The military takeover in February 2021 sparked widespread protests and violence across the country, with thousands of people taking to the streets to demand the release of detained political leaders, including the State Councilor Aung San Suu Kyi and President U Win Myint and the restoration of democracy.
But following the February 2021 military coup, the military brutally cracked down on civilians protesting against the regime. Reports indicate that the army used extreme measures to suppress dissent, including firing on protesters on the spot and arresting individuals, some of whom were found dead the next day. The military junta also took steps to silence activists and journalists who spoke out against the coup on social media in freeze their bank accounts, making it difficult for them to access their funds and personal savings. These actions have led to widespread condemnation from the international community and raised concerns about the deteriorating human rights situation in Myanmar.
A source of ANTS, a group that raises funds for the democracy movement in Myanmar, told me that many of their members and friends had had their bank accounts frozen by the military regime since they began their fundraising efforts in Myanmar. October 2021. These efforts have also led to arrests. and interrogation of family members of activists. In response to the situation, a 22-year-old ANTS activist told me, “To overcome the freezing of their bank accounts, ANTS changed their fundraising strategy to take bank information private and request donors to write payment for online purchases in the notes section to reduce the risk of exposure.”
Aiding resistance groups in Myanmar poses a significant danger to individuals, regardless of their social hierarchy. Even a donation of less than $10 to these groups led to ten years in prison for some individuals. In one case, a well-known jeweler from the Mandalay area was arrested for allegedly supporting the resistance, resulting in the seizure of his assets including properties, businesses and a astonishing 193 tons of raw jade valued at around 12 billion kyats (equivalent to around $5.7 million).
Alternatives, but not solutions
Additionally, the group revealed that they have been exploring other digital payment options such as NUG Paya pilot digital currency platform launched by the shadow government of Myanmar, the Government of national unity (NUG). However, as one of their members explained, “Our donors are hesitant to use the platform because it requires opening a bank account with an agent who is either inside Myanmar, either outside of Myanmar. Who can guarantee that it is purely safe for the agent and users in terms of data security? It seems to have a double risk than using the traditional banking system.”
But NUGPay, a digital currency platform built on the open-source Stellar networkhas faced data security concerns from many people.
Since May 28, 2023, the Stellar blockchain had registered 26,950 lines of trust using the platform. However, the Exxon Film Investment mobile app – which reportedly lured users with interest yield incentives – had managed to scam more than 30,000 people in Myanmarcreating a number of users who are now discouraged from exploring digital currencies like Bitcoin which exceeds the entire NUGPay user base, highlighting the challenges of ensuring the security of digital financial transactions in Myanmar.
“I think from my experience, many young locals still don’t believe in the potential of digital currency,” Feliz, the founder of Cryptocurrency, a local crypto educational community, told me. “He is still skeptical in our community. Not to mention the seniors.
He added, “A lot of people in our community have come into the bitcoin and crypto trading industry because they are quite cash rich, but they don’t know what to do in this economic fallout.”
Regarding NUGPay, Feliz expressed concern about its limited adoption, saying, “I think the problem with NUGPay is limited adoption. You can’t use it as a currency outside of the revolutionary group. I think it needs widespread adoption everywhere to make it an effective currency. Even some people who trade bitcoins and cryptos don’t use or hesitate to use NUGPay due to its limited acceptance. Even (a) user who is not under the military scope does not know what to use NUGPay for other than supporting the resistance.”
How Bitcoin Can Help Those Resisting the Army in Myanmar
But Bitcoin could be a better alternative for those in Myanmar who are cut off from traditional banking services or fear currency devaluation.
Research led by the Burma Bitcoin Initiative shows that while the value of the kyat has fallen by more than 35% since the military coup, the price of bitcoin has doubled over the same period. Before the coup, the price of 1 BTC was around 500 million kyats, but it hovers around 1 billion kyats on Binance’s peer-to-peer exchange at the time of this writing.
“We believe the adoption of bitcoin and other digital currencies in Myanmar will be a gradual process, given the current economic environment and the fragile risk tolerance of the majority of people,” a representative told me. of the Bitcoin Myanmar Initiative. “However, we see the potential for growth due to the country’s previous experiences in technological leaps. With a smartphone penetration rate of 78% and only 36% of the population having a bank account, many people in Myanmar are looking for an alternative to traditional technologies. By promoting a form of currency that no one can control, we aim to help people claim their property rights digitally and break free from the monetary policy of the military regime. We believe that this n It’s only a matter of time before more people in Myanmar recognize the benefits of bitcoin.”
Highlighting another powerful example of how Bitcoin can help people in Myanmar in “Check Your Financial Privilege,” author Alex Gladstein wrote that:
“As a personal example, someone reached out to me at the start of the revolution in Myanmar in February 2021. They wanted to help the democracy movement, but the banking system was basically closed and there was no easy way to transfer dollars. After doing some research, we were introduced to an aid worker turned activist who was also a bitcoin user. He could easily accept a donation, save it in BTC, and then sell it on peer-to-peer marketplaces when he needed to spend the collapsing local kyat currency on goods. An address was sent via Signal and a gift was made within minutes. No barriers, no intermediaries and no possibility of corruption along the way. This is just a small example, but it is a glimpse of what the future may hold.
This is a guest post by Win Ko Ko Aung. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
