Myanmar Shadow Government to Launch Neobank with Crypto Support for Anti-Military Junta Efforts

Myanmar Shadow Government to Launch Neobank with Crypto Support for Anti-Military Junta Efforts

The Blockchain Revolution: Myanmar’s National Unity Government Launches Neobank

Myanmar’s shadow government, the National Unity Government (NUG), is set to disrupt the country’s financial system by launching a neobank that leverages blockchain technology. Led by supporters of the ousted leader Aung San Suu Kyi, the Spring Development Bank (SDB) aims to challenge the military junta that currently controls Myanmar. With a focus on providing financial services to Suu Kyi supporters, including the Burmese diaspora, the neobank plans to offer currency swaps, fixed deposits, and prize-linked savings accounts.

Challenging the Status Quo

Myanmar has faced extensive sanctions from governing bodies such as the U.S. and the EU following the military coup in February 2021. The NUG has been actively raising funds to challenge the State Administration Council (SAC) and regain power. Their efforts have included issuing revolutionary bonds and auctioning off assets, such as a villa owned by army general Min Aung Hlaing. The NUG’s vision is to confiscate these assets once power is restored and distribute the proceeds to the buyers.

The Birth of the Spring Development Bank

The NUG’s Ministry of Planning, Finance, and Investment is the sole shareholder of the Spring Development Bank. To raise capital, SDB will conduct two phases of share offerings. The first phase will be a pre-initial coin offering (ICO) exclusively for SDB account holders, while the second phase will target institutional investors. Additionally, the bank plans to raise funds through remittance, currency exchange, loans, and other monetary products.

SDB aims to onboard 100,000 active users within six months. The bank will support four currencies: the Myanmar kyat (MMK), U.S. dollar, Singaporean dollar, and Thai baht. To minimize currency and exchange risks, MMK will be swapped to the USDT stablecoin, while the other currencies will be kept in their original form.

Embracing Blockchain Technology: Currency Swaps and Security

SDB will leverage the Polygon blockchain for its operations and utilize Uniswap v3 pools and USDT stablecoins for currency swaps. Through the neobank, users will be able to deposit foreign currency and receive stablecoins in return. When the exchange rate is favorable, they can convert their foreign currency stablecoins back to MMK stablecoins and use local agents to withdraw cash within Myanmar.

To ensure the security of user funds and data, SDB will comply with the Basel Accords and Financial Action Task Force (FATF) regulations. The bank employs various security measures, including data segregation, fund segregation, and multiple “vaults” to safeguard customer funds. A dedicated cybersecurity team, including red team and internal hackers, works tirelessly to protect users’ data.

The Path to Financial Inclusion and Rebuilding Myanmar

The launch of SDB represents a significant step towards financial inclusion for Myanmar’s population of 55 million. Many of its citizens are young and tech-savvy, with extensive access to the internet and 5G coverage. The neobank aims to provide convenient and efficient financial services to the people, leveraging technologies such as QR code payments and mobile apps.

Beyond providing financial services, SDB also seeks to support the post-revolution rebuilding efforts in Myanmar. Users will have the option to donate directly to the revolutionary cause through the neobank. By deploying funds via efficient routes, SDB aims to contribute to the nation’s reconstruction once power is restored to the NUG.

In conclusion, the launch of Myanmar’s Spring Development Bank signifies a major milestone in the country’s financial landscape. Leveraging blockchain technology, the neobank aims to disrupt the existing financial system controlled by the military junta. With its innovative services and commitment to financial inclusion, SDB has the potential to reshape Myanmar’s economy and empower its citizens.