The Central Bank of Myanmar is worried about the increasing number of citizens losing money to crypto fraudsters and for this reason, issued a second warning to the public regarding investment into the new asset class.
A local news agency, Irrawaddy reported the development on May 3, citing a statement released by the banking authority amid scams targeting people with little to no knowledge about cryptocurrencies.
In its statement, the Central Bank of Myanmar acknowledged that citizens are selling cryptocurrencies like Bitcoin (BTC) and Ether (ETH) via Facebook profiles while some others fancied it as a means of payment for goods and services.
However, the banking authority went on to remind the public that it remains the sole issuer of domestic currency and does not authorize the use of or trading of cryptocurrencies in the country.
A former deputy governor of the Myanmar Central Bank, U Than Lwin, quoted in the report, mentioned three reasons why the Myanmar populace should stay away from cryptocurrencies namely:
The volatility of the crypto markets
The difficulty in taking legal action for crypto-related cases and
The lack of consumer protection.
Speaking on the matter of volatility, U Than alleged that the price of cryptocurrencies are “unstable all the time” and could result in losing everything that people invest in them. “It’s like gambling” he claimed.
As noted earlier, this is not the first time the Myanmar Central Bank is issuing a warning against the use of cryptocurrencies. The banking authority also released a similar warning last year at the peak of the ICO and crypto market boom even though till date it has not released a framework to regulate the industry.
Meanwhile, the South African Reserve Bank (SARB) which also issued such a warning last year has moved to release proposed regulations for the use of cryptocurrencies in the African nation.