Crypto Bank Planned by Myanmar Shadow Government

Updated: 20 July 2023

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Myanmar’s shadow government plans to launch a crypto bank and hopes it will help in its opposition to the ruling military junta.

Spring Development Bank is scheduled for a soft launch on July 22 and is built on the Polygon blockchain, making domestic and international transactions smoother and providing easy access to various financial products globally.

The bank derives its name from the movement led by the National Unity Government, the exiled opposition to the military junta’s State Administration Council.

The bank aims to cater to 55 million residents within Myanmar and also some two million Burmese living outside the country. This global Burmese population frequently repatriates funds, establishing strong economic ties to their homeland.

Crypto Bank is Revolutionary

Tin Tun Naing, who is currently serving as the interim central bank governor and acting finance and industry minister, expressed great enthusiasm for the Spring Development Bank, characterizing it as having a “revolutionary” spirit.

He pointed out the potential dangers involved in moving funds into a banking system controlled by the military, underlining the pressing requirement for a reliable and government-backed alternative financial system.

Naing also mentioned to Bloomberg that the existing financial system based on military control is facing significant challenges and instability, further emphasizing how the Spring Development Bank could play a crucial role in protecting the financial assets of the citizens.

By leveraging the power of the Polygon blockchain ecosystem, the bank aims to be strategically positioned to substantially reduce costs, making financial services accessible for those involved.

The bank also has plans to launch several new stablecoins that are pegged to different fiat currencies like the Myanmar kyat, Thai baht, Singapore dollar, and U.S. dollar. These stablecoins will be tied to their respective fiat counterparts in a bid to stabilize their value.

To make these stablecoins more accessible, the bank has developed a special “currency swap” feature. This feature is powered by UniSwap V3, a popular decentralized exchange protocol. The feature can be leveraged to exchange one stablecoin for another.

In October 2021, the National Unity Government (NUG) garnered considerable international recognition, receiving support from multiple United Nations member countries and the European Parliament. But the US has yet to recognize it.