Myanmar has been under the control of a military government since the February 2021 coup, leading to a host of economic and financial disruptions. One of the most drastic measures taken by the military government was freezing all bank accounts. This action has left the population in turmoil, with many struggling to access their money and manage their finances effectively. However, in the face of such adversity, individuals and businesses have started exploring alternative financial strategies to survive and adapt. This article explores three viable survival financial strategies that people in Myanmar can consider during this difficult time.

1. Using Digital Wallets and Cryptocurrencies

With traditional banking systems effectively blocked, digital wallets and cryptocurrencies have emerged as a significant solution. Digital wallets such as Wave Money, KBZPay, and other mobile money services allow users to send, receive, and store money digitally without the need for a physical bank account. These services offer an easy way to conduct transactions and make payments without relying on the traditional banking system, which has been frozen.

Cryptocurrencies, such as Bitcoin and Ethereum, also provide a decentralized alternative. While cryptocurrencies face volatility, they offer an avenue for individuals to transfer funds across borders and access liquidity when traditional financial systems are compromised. The ease of accessing cryptocurrencies through mobile applications and online platforms allows individuals to maintain some financial freedom even in an environment where traditional banking is restricted.

Advantages of Digital Wallets and Cryptocurrencies:

• Accessibility: Individuals can manage finances using just a mobile phone.
• Cross-border Transactions: Cryptocurrencies allow for seamless international transactions.
• Anonymity: Digital wallets can provide privacy in financial transactions.

Challenges:

• Volatility: Cryptocurrencies are highly volatile and may not be suitable for long-term savings.
• Technical Barriers: Not everyone in Myanmar has access to smartphones or the technical knowledge to use cryptocurrencies effectively.

2. Engaging in Barter Systems and Local Trade

In situations where digital wallets and cryptocurrencies are not viable options, a more traditional approach like bartering can provide a practical solution. A barter system involves the direct exchange of goods and services without the need for money. In rural areas or communities with limited access to digital platforms, people have begun relying on barter systems to survive. This could mean exchanging food for household items or offering services such as childcare or construction in return for goods or other services.

Local trade networks are becoming increasingly common as people seek to create self-sufficient communities. Farmers, artisans, and small business owners are turning to local markets and community-based trading to sustain their livelihoods. These barter systems may be limited in scope but can play a crucial role in keeping the economy moving when formal financial systems are not available.

Advantages of Barter Systems:

• No reliance on cash or bank accounts.
• Strengthens local economies by promoting community interdependence.
• Provides a temporary solution when other financial services are unavailable.

Challenges:

• Limited to the local area and the types of goods or services people are willing to trade.
• The complexity of finding someone who has exactly what you need and is willing to trade.

3. Investing in Precious Metals and Commodities

For individuals who are able to retain some capital, investing in tangible assets such as gold, silver, or other precious metals could be a way to protect wealth in times of instability. Precious metals have historically been considered safe-haven assets during times of economic uncertainty, as they hold intrinsic value and are not tied to any specific currency or government.

In Myanmar, where inflation rates have soared and the currency has devalued, investing in gold and silver can provide a hedge against the collapse of the local currency. Gold, in particular, has become a highly sought-after commodity, as it is universally recognized and can be easily sold or exchanged for goods and services. Precious metals also offer portability, meaning they can be carried or stored in a variety of ways that make them ideal for an unstable environment.

Advantages of Investing in Precious Metals:

• Protection against inflation and currency devaluation.
• Universal value and recognition.
• Tangible and portable.

Challenges:

• Initial cost: Not everyone can afford to purchase gold or silver in significant quantities.
• Risk of theft: Physical commodities such as gold can be vulnerable to theft if not securely stored.

Conclusion

The freezing of bank accounts by Myanmar's military government has created a financial crisis for millions of people, but it has also led to the development of alternative survival financial strategies. Digital wallets and cryptocurrencies offer a modern way to maintain financial control, while barter systems allow people to rely on direct exchanges of goods and services. Precious metals, such as gold, provide a hedge against inflation and currency devaluation.

Despite the challenges faced, these alternative financial strategies give hope to the people of Myanmar that they can still manage their finances and adapt to the ever-changing environment. It’s important to note that these strategies come with their own risks and limitations, and individuals must carefully assess their options before making decisions.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. The methods discussed may not be suitable for all individuals or situations. Please consult with a professional advisor before making any financial decisions.