The military council has announced the implementation of the Myanmar QR (MMQR) digital payment system, which will eliminate the need to print billions of kyats in physical currency. The system will be used for various state expenditures, including budget deficits and salaries of civil servants under the military council. Although this system was initially prepared during the National League for Democracy government, the military council pushed for its rapid implementation in June 2024, with Min Aung Hlaing personally launching it on February 27.
According to the military council’s central bank regulations, person-to-person transactions are limited to 1 million kyats per transaction and 5 million kyats per day. For payments from individuals to merchants, including gold shops, electronics stores, construction material shops, and healthcare centers, the daily limit is set at 10 million kyats. Mobile money accounts are restricted to a maximum balance of 10 million kyats, with any excess requiring daily transfer to bank accounts. The military council has designated 34 ministries and civil servants in Yangon, Mandalay, and Naypyidaw to receive monthly salaries through digital currency by August 2024, with private banks and military-backed financial service providers being granted operational licenses.
The implementation of the digital currency system is primarily aimed at avoiding the printing of billions of kyats in physical currency and controlling inflation. However, this is being hastily implemented without proper integration of digital currency with the entire economic sector, unlike international standards. The system will be used for various transactions including tax payments, utility bills, tourism services, civil servant salaries, pension disbursements, small businesses, fuel stations, private hospitals, schools, and consumer goods sales. The military council claims this will facilitate trade, investment, tourism, and foreign remittance matters, though the system lacks the comprehensive infrastructure and safeguards found in international digital payment systems.
