- Myanmar’s exiled government supports crypto-based neobank.
- The Spring Development Bank is Myanmar’s first financial institution to run entirely on crypto and blockchain.
- The SDB, constructed on the Polygon Network, aims to revolutionize domestic and international payments.
The ejected leaders in Myanmar are launching a crypto-based bank to bankroll efforts in clawing back government control from military rule. Myanmar is all set to launch its first fully crypto-based banking institution, the Spring Development Bank, offering increased access to financial services and funding for the country’s shadow government, led by the exiled National Unity Government (NUG).
The bank derives its name from the Spring Revolution, an opposition movement that bravely challenges the ruling military junta. The goal of the SDB is to bring “freedom and democracy to the 55 million citizens of Myanmar,” a lofty ambition that reflects the NUG’s determination to empower its people through innovative means.
The Spring Development Bank, constructed on the Polygon Network, aims to revolutionize domestic and international payments, making them faster and more efficient. However, the bank’s vision extends beyond just payments. Following a recent press conference, bank officials revealed plans to offer diverse financial products, including fixed deposits, currency exchange services, cross-country remittances, and even digital gold savings options.
Is Spring Development Bank Signaling A Glimmer Of Hope For The Crypto Space?
Speaking on the condition of anonymity for security reasons, Spring Development Bank official told Cointelegraph that crypto was the obvious solution to provide financial support to Burmese citizens as well as its exiled government. The official said:
“Spring Development Bank and the blockchain technology it’s powered by is the natural progression of a fundraising strategy for the NUG.”
However, the NUG did not create the bank, but it has been launched with its full support and resources. Additionally, the bank is expected to operate under the supervision of Myanmar’s NUG-controlled interim central bank.
The crypto bank’s CEO, Calvin T, has highlighted that the launch of the new institution signaled the first step in returning financial freedom to Myanmar. In the same vein, Tin Tun Naing, Myanmar’s interim central bank governor and acting minister for finance and industry, lauded the bank as a “revolutionary” institution designed to counter the military-controlled financial system and provide a trustworthy government-guaranteed alternative. Tin Tun Naing asserted:
“We cannot just move funds into a banking system controlled by the military, so we have to provide this alternative financial system based on trust and guaranteed by the government.
Further, the Spring Development Bank aims to address the high fees associated with remitting money to Myanmar traditionally— which currently stands at 30%. As such, it will leverage the Polygon ecosystem to offer cost-effective and sustainable solutions. On stablecoins, the bank plans to issue several new fiat-pegged stablecoins, including the Myanmar kyat, Thai baht, Singapore dollar, and the U.S. dollar. Users can seamlessly exchange stablecoins using the bank’s “currency swap” feature built on UniSwap V3.
Additionally, the official stated that residents who support the NUG — which could be as simple as having the wrong app on their phone — are routinely “made an example of” through public displays of violence and imprisonment. The official explained, “The bank’s interface will look and feel like an application. Still, we encourage everyone to access it using their incognito window so it doesn’t store any browser history. “As such, the bank’s user interface has been designed as a “web-only” platform.
It is worth mentioning that the SDB’s arrival signals a glimmer of Hope amidst these trying times in the crypto space, offering a beacon of financial opportunity for the citizens of Myanmar. With the support of the NUG, the bank is looking to take an innovative approach to serve Burmese citizens better at home and abroad.
