Digital Payments Transformation and Challenges in Myanmar: Pre-coup and Post-coup

Moe Theingi, Dr. Phil. Gabriel Lele

2024 | Skripsi | ILMU ADMINISTRASI NEGARA (MANAJEMEN DAN KEBIJAKAN PUBLIK)

The rapid growth of digital payments has become a crucial aspect of global economic development and personal financial empowerment, particularly in emerging and developing countries like Myanmar. This study aims to explore the impact of digital payment systems on Myanmar's economy and society, considering the recent military takeover and political unrest. Digital payments offer numerous benefits, such as increased business efficiency, financial inclusion, and economic activity, as well as improved financial literacy and access to financial services for underprivileged populations. However, the military coup in Myanmar has hindered the progress of digital payment adoption by limiting internet access and imposing strict regulations on mobile money service providers, raising concerns about privacy and surveillance. The cash shortage resulting from the coup has further complicated the situation, with a dual-value system emerging for the Myanmar currency and the resurgence of the informal hundi system. This paper investigates the objectives of understanding the current state of digital payments in Myanmar, analysing the impact of the military coup on digital payment adoption, and identifying potential solutions to overcome the challenges posed by the current political and economic climate. The findings of this study will contribute to understanding the role of digital payments in Myanmar's economic and social development, and provide insights for policymakers and stakeholders to navigate the complexities of the current situation.

The rapid growth of digital payments has become a crucial aspect of global economic development and personal financial empowerment, particularly in emerging and developing countries like Myanmar. This study aims to explore the impact of digital payment systems on Myanmar's economy and society, considering the recent military takeover and political unrest. Digital payments offer numerous benefits, such as increased business efficiency, financial inclusion, and economic activity, as well as improved financial literacy and access to financial services for underprivileged populations. However, the military coup in Myanmar has hindered the progress of digital payment adoption by limiting internet access and imposing strict regulations on mobile money service providers, raising concerns about privacy and surveillance. The cash shortage resulting from the coup has further complicated the situation, with a dual-value system emerging for the Myanmar currency and the resurgence of the informal hundi system. This paper investigates the objectives of understanding the current state of digital payments in Myanmar, analysing the impact of the military coup on digital payment adoption, and identifying potential solutions to overcome the challenges posed by the current political and economic climate. The findings of this study will contribute to understanding the role of digital payments in Myanmar's economic and social development, and provide insights for policymakers and stakeholders to navigate the complexities of the current situation.

Kata Kunci : Keywords: Digital payments, Economic growth, Financial inclusion, Military Coup, Myanmar, Mobile Money, Privacy Concerns