May 20, 2024

Myanmar’s Shadow Government Launches Crypto Neobank

Myanmar’s shadow government, the National Unity Government (NUG), is launching a neobank called the Spring Development Bank (SDB), which will run on the Polygon blockchain and conduct currency swaps using Uniswap v3 pools and USDT stablecoins. The bank’s web-based app will have a beta launch on July 22 and will be available on Google Play and Apple’s App Store.

SDB aims to disrupt Myanmar’s financial system, which is currently controlled by the military government, the State Administration Council (SAC). It will offer users currency swap, fixed deposits, and prize-linked savings account services. The bank plans to target Suu Kyi supporters, including the Burmese diaspora, as customers.

The NUG’s Ministry of Planning, Finance, and Investment will be the sole shareholder of SDB. The bank’s shares will be offered to the public in two phases, including a pre-initial coin offering (ICO) round with the bank’s own token exclusively for SDB account holders and an ICO round for institutional investors. SDB aims to onboard 100,000 active users in six months.

The bank will support four currencies: Myanmar kyat (MMK), U.S. dollar, Singaporean dollar, and Thai baht. Users will be able to deposit foreign currency and receive stablecoin in return. The bank complies with Basel Accords and Financial Action Task Force (FATF) regulations, and it has various security measures in place to protect user data and funds.

Myanmar has a young and tech-savvy population with extensive 5G coverage, making it a potentially attractive market for digitalbanking services. The NUG has been raising funds to challenge the SAC since 2021 and aims to rebuild the country after the revolution.