Myanmar Government in Exile Backs Crypto Bank Launch
Myanmar is on the cusp of a financial revolution as the National Unity Government (NUG), the country’s exiled shadow government, introduces the Spring Development Bank (SDB), a crypto-based financial institution.
With a mission to bestow long-awaited financial freedom and digitized sophistication upon the nation’s citizens, the SDB aspires to reshape Myanmar’s financial landscape.
Built on Polygon
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.
Constructed on the Polygon Network, the SDB aims to revolutionize domestic and international payments, making them faster and more efficient. But the bank’s vision extends beyond just payments. Following a recent press conference, bank officials revealed plans to offer a diverse range of financial products, including fixed deposits, currency exchange services, cross-country remittances, and even digital gold savings options.
Reaching the Burmese diaspora
Notably, the SDB’s reach extends beyond Myanmar’s borders to the two-million-strong Burmese diaspora residing abroad. This diaspora frequently sends money back to their homeland, but the current remittance fees can soar as high as 30%. The bank intends to alleviate this burden, reducing the costs associated with sending money back to Myanmar.
The Spring Development Bank operates under the licensing and regulation of the Interim Central Bank of Myanmar, which is under the control of the NUG. U Calvin, the bank’s CEO, emphasized that this launch marks the initial step towards restoring financial independence to Myanmar.
The bank’s emergence comes amid Myanmar’s complex relationship with cryptocurrencies. While there is no specific legislation addressing cryptocurrencies, the Central Bank of Myanmar issued a ban on them in 2020, and the military junta later proposed a cybersecurity law that criminalized their usage in January 2022.
July soft launch
A soft launch of the SDB is scheduled for July 22, with 1,000 private beta users and 100 relationship managers. The bank expects to achieve a full launch in late August, with the goal of attracting 100,000 active users within the first six months of operation.
Despite these regulatory challenges, Myanmar’s people have turned to cryptocurrencies as an escape from their dire financial situation. Since the February 2021 coup, the country’s economy has suffered significantly, with the World Bank estimating an alarming 18% annual contraction. Fading trust in the traditional banking system, controlled by the military, has further crippled the financial market.
The Myanmar kyat (MMK) plummeted to an all-time low of 2,200 against the US dollar (USD) in September 2021, down from 1,330 in February 2020 (currently 1 USD = 2,100 MMK).
The SDB’s arrival signals a glimmer of hope amidst these trying times, 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 better serve Burmese citizens, both at home and abroad.
