Bitcoin Is Becoming a Lifeline for Political Dissidents in Myanmar

This is an opinion editorial by Win Ko Ko Aung, a McCourt Scholar with Georgetown University’s Data Science for Public Policy Program and a survivor of Myanmar’s 2021 military coup.

As the 2024 US presidential election campaign begins, one of the candidates, Robert F Kennedy Jr, took to Twitter to express his support for bitcoin. in a tweetHe added that “Bitcoin has been a lifesaver for people’s movements around the world, especially in Burma.”

Myanmar, also known as burma, is a country located in Southeast Asia, bordered by China, India, Thailand, Laos, and Bangladesh. The country has stunning natural beauty, including untouched beaches, vast forests, and a rich culture of Buddhism. Despite these attractions Myanmar has Torn by the world’s longest civil warwhich has been going on for more than 70 years, since it achieved (Independence in 1945, The country has experienced several military coups throughout its history, leading to political instability and economic upheaval. moreover, The government has a history of demonetizing the local currencyAnd there have been frequent banking crises.

One of the most notable examples of Myanmar’s demonetisation led to the historic “8888 Uprising” in 1987. On September 5, 1987, the military dictator won Myanmar announces demonetisation of 25, 35 and 75 kyat notes without giving prior notice or substituting them for the citizens. At that time these notes were accounted for 80% of circulation in the economy, Previous Demonetization Attempts in 1964 and 1985 note holders were compensatedWhat made this move in 1987 particularly unexpected and devastating for the people of Myanmar. The choice to demonetise these special, odd denominations has given rise to significant speculation, as they were believed to have special status. It is widely believed that Ne Win, who was highly superstitious, considered these numbers to be favorable for both the country and himself on a personal level.

Myanmar’s transition era begins US President Barack Obama’s visit to the country in 2012anymore First civic election in 2015, which marked an important milestone in the country’s path towards democracy. Although 2021 Myanmar military coup The country has been pushed back a decade. The army’s seizure of power in February 2021 has sparked widespread protests and violence across the country, with thousands taking to the streets to demand the release of detained political leaders, including State Counselor Aung San Suu Kyi and President U Win Myint and the restoration of democracy.

But after the military coup in February 2021, the army has brutally cracked down on civilians protesting against the regime. reports tell that the military has resorted to extreme measures to suppress dissent, including shooting protesters on the spot and arresting individuals, some of whom have been found dead the next day. The military junta has also taken steps to silence activists and journalists who spoke out against the coup on social media freezing their bank accounts, making it difficult for them to access their money and personal savings. These actions have drawn widespread condemnation from the international community and raised concerns about the deteriorating human rights situation in Myanmar.

a source from Ants, a group that raises money for the democracy movement in Myanmar, told me that the bank accounts of many of their members and their friends were frozen by the military regime since they began their fundraising efforts in October 2021. These efforts have also led to arrests. Inquired the relatives of the workers. Responding to the situation, a 22-year-old ANTS activist told me, “To recover from having their bank accounts closed, ANTS changed its fundraising strategy to take bank information private and send notes to donors.” Instructed to write online shopping payment in the section. Minimize the risk of exposure.”

Aiding resistance groups in Myanmar poses a significant threat to individuals regardless of social hierarchy. Even donating as little as $10 to these groups Some persons have been sentenced to ten years in prison, In one instance, a well-known jeweler in the Mandalay region was arrested for allegedly supporting the resistance, resulting in the confiscation of his assets, including properties, businesses and property. an astonishing 193 tons of raw jade Its value is approximately 12 billion kyat (equivalent to approximately $5.7 million).

option but not solution

Furthermore, the group revealed that they have explored alternative digital payment options such as NUGPAYA pilot digital currency platform launched by Myanmar’s parallel government, the national unity government (NUG). However, as one of their members explained, “Our donors hesitate to use the platform because it requires opening a bank account with an agent who is either inside Myanmar or outside Myanmar. Is it completely safe for the agent and the user in terms of data security? It seems like a double risk compared to using the traditional banking system.

But NUGPay, a digital currency platform called open-source stellar networkhas faced concerns about data security from many people.

By May 28, 2023, Stellar Blockchain recorded 26,950 trustlines using the platform, However, the mobile app Exxon Film Investments – which allegedly lured users with interest-yielding incentives – had managed to swindle more than 30,000 people in MyanmarHighlighting the challenges of ensuring the safety of digital financial transactions in Myanmar, it has created a number of users who are now discouraged from exploring digital currencies such as bitcoin which make up more of NUGPay’s entire user base.

“I think from my experience, many local youth still do not believe in the potential of digital currency,” Feliz, founder of sheath crypto, a local crypto educational community, told me. “It’s still skepticism in our community. Not to mention seniors.”

“A lot of people in our community got into the bitcoin and crypto trading industry because they are cash rich but don’t know what to do in this economic downturn,” he said.

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 Revolution Group. I think it needs to be widely adopted everywhere to make it an effective currency. Even some people who trade bitcoin and crypto don’t use NUGPay because of its limited acceptance or hesitate to use it. Even (a) the user who is not under military access does not know what to use NUGPay for other than to support it. Resistance. “

How bitcoin could help those opposing the military in Myanmar

But bitcoin could serve as a better alternative for those in Myanmar who are cut off from traditional banking services or fear currency devaluation.

research organized by bitcoin myanmar initiative Shows that, while the value of kyat has fallen by more than 35% since the military coup, the price of bitcoin has doubled in the same period. Before the coup, 1 BTC was worth about 500 million kyat, but it is hovering around 1 billion kyat Binance’s peer-to-peer exchange as of this writing.

“We believe that the adoption of bitcoin and other digital currencies in Myanmar will be a gradual process, given the current economic climate and the delicate risk tolerance of most people,” a representative from the Bitcoin Myanmar Initiative told me. “However, we see potential for growth due to technology leapfrogging due to the country’s past experiences. With a smartphone penetration rate of 78% and only 36% of the population holding a bank account, many people in Myanmar are looking for alternatives to the traditional Banking. By promoting a form of currency that no one can control, we aim to help people digitally reclaim their property rights and free themselves from the monetary policy of military regimes. Believe it is 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 “Examine Your Financial Privilege,” author Alex Gladstein wrote that:

“As a personal example, someone reached out to me at the start of the Myanmar revolution in February 2021. They wanted to provide aid to the democracy movement, but the banking system was practically shut down, and there was no easy way to wire up dollars After some research, we were introduced to a support worker turned activist who was also a bitcoin user. He could easily accept a donation, save it in BTC, and then send it to peer-to-peer markets. Can sell when he needs to by shelling out the local kyat currency on the goods. An address was sent on the signal, and a gift was delivered within minutes. No hassles, no middlemen, and no possibility of corruption along the way No. 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 Ang. The opinions expressed are solely his own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.