Myanmar Set For First Crypto-Based Bank To Boost Financial Inclusion
- Myanmar’s Spring Development Bank, the country’s first crypto-based banking institution, plans a soft launch on July 22, aiming to boost financial services for its citizens and diaspora.
- Built on Polygon, the bank seeks to revolutionize payments and provide global access to financial products.
- Myanmar’s military government also plans to introduce a digital currency in 2022 to stimulate the economy and enhance financial activities.
According to Cointelegraph, Myanmar’s financial landscape is set to undergo a significant transformation as the country prepares for the launch of its first entirely crypto-based banking institution, the Spring Development Bank.
The bank is scheduled for a soft launch on July 22, marking a groundbreaking move that could potentially grant the country’s shadow government, the National Unity Government (NUG), increased access to financial services and funding.
Named after the Spring Revolution, the opposition movement led by the NUG against the ruling State Administration Council (SAC), the Spring Development Bank is aimed at not only the 55 million Burmese residents within Myanmar but also the two-million-strong “Burmese diaspora” living and working outside the country who frequently send remittances back home.
Built on the Polygon blockchain, the bank’s primary objective is to revolutionize domestic and international payments, making them faster and more efficient while also offering global access to a wide array of financial products. Additionally, the bank’s use cases include carbon emission management platforms based on blockchain and IoT technologies, as well as a blockchain-based platform for the automotive industry, providing a glimpse into its potential impact across different sectors.
A spokesperson for the Spring Development Bank, who chose to remain anonymous for security reasons, highlighted how crypto was the natural solution to provide financial support to Burmese citizens and the exiled government, stating that it represents the “natural progression in terms of a fundraising strategy for the NUG.”
While the new crypto bank was not launched directly by the NUG, it enjoys full support and resources from the government in exile. Moreover, the bank operates with the approval and regulation of the NUG-controlled interim central bank of Myanmar.
One notable aspect of the bank’s operations is its integration with the Polygon ecosystem. Built on Polygon for cost reasons and the belief in the ecosystem’s longevity, the Spring Development Bank will issue several fiat-pegged stablecoins, including the Myanmar kyat, Thai baht, Singapore dollar, and the U.S. dollar. These stablecoins will be exchangeable using the bank’s “currency swap” feature, built on UniSwap V3, providing users with flexibility and convenience.
Given the sensitive political climate in Myanmar, especially for those supporting the NUG, the bank has taken extra precautions to protect its users. The interface of the Spring Development Bank has been designed to operate as a web-only platform, resembling an application but ensuring anonymity for users by not storing any browser history.
Myanmar’s NUG declared the U.S. dollar-pegged stablecoin Tether (USDT) as legal tender in December 2021, aiming to expedite international trade and expand financial options in the country.
The launch of the Spring Development Bank represents a significant milestone for Myanmar as it seeks to leverage blockchain and crypto technologies to improve financial inclusion and provide a more secure and efficient financial infrastructure for its citizens and diaspora.
Myanmar’s military government has unveiled plans to introduce a digital currency in 2022 with the goal of supporting domestic payments and stimulating economic growth. According to Major General Zaw Min Tun, a prominent spokesperson for the State Administration Council, the digital currency initiative aims to enhance financial activities in Myanmar.
The digital currency is envisioned to serve as a means of facilitating payments within Myanmar and bolstering the overall economy. With this initiative, Myanmar’s military government seeks to harness the potential of digital currencies to drive financial development and foster economic prosperity within the country.
However, as the plan takes shape, military officials are yet to decide whether to collaborate with local companies or independently release the digital token. The project, led by the chief of the military government’s “True News Information Team,” indicates the administration’s determination to explore innovative solutions to address the nation’s financial needs.
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