Myanmar’s National Unity Government (NUG), a shadow government opposed to the current military rule, will launch a new bank operating on the Polygon blockchain network.
The development is aimed at disrupting the military-controlled financial system and funding efforts to restore civilian rule.
neobanking initiative
NUG’s new bank, dubbed Spring Development Bank (SDB), plans to offer currency swaps, time deposits and rewards-linked savings account services through a web-based application, according to a spokesperson’s statement at a recent virtual press conference. The bank is aimed primarily at catering to supporters of ousted leader Aung San Suu Kyi, including the Burmese diaspora.
by using swimming pool and , SDB will enable users to bypass the traditional financial infrastructure controlled by the junta State Administrative Council (SAC). Donations received through SDB will go directly to the revolutionary cause and help rebuild Burma after the revolution.
raise money for the revolution
Since the military coup in February 2021 triggered various sanctions from governing bodies such as the US and the EU, the NUG has been devising innovative ways to raise funds to challenge the junta. These moves include issuing revolution bonds and auctioning off property held by military leaders.
The bank, which is wholly owned by the NUG Ministry of Planning, Finance and Investments, intends to issue shares to the public in two stages. An Initial Coin Offering (ICO) round will be dedicated to SDB account holders, followed by an ICO round for institutional investors. The bank also plans to raise funds through remittances, currency exchanges, loans and other financial products. In 2021, NUG allocated .
Since October 2021, the revolutionary government has been recognized by the United Nations and members of the European Parliament as the official government of Myanmar. But it is clear that the United States has never officially revealed any acknowledgment of the matter.
Security Measures and User Objectives
To ensure compliance with Basel Accord and Financial Action Task Force (FATF) regulations, SDB will implement multiple layers of data and funds segregation. SDB’s goal is to attract 100,000 active users within six months.
Despite the challenges faced by the NUG, the launch of the SDB demonstrates how blockchain technology can be used to challenge existing systems and foster political change.
