Myanmar’s National Unity Government (NUG), a shadow government opposing the current military rule, is set to launch a neobank operating on the Polygon blockchain network.
This development aims to disrupt the military-controlled financial system and fund efforts to regain civilian rule.
Neobank Initiative
The NUG’s neobank, known as the Spring Development Bank (SDB), plans to offer currency swap, fixed deposits, and prize-linked savings account services via a web-based app, according to a spokesperson’s statement at a recent virtual press conference. The bank aims to primarily cater to supporters of the ousted leader, Aung San Suu Kyi, including the Burmese diaspora.
By using pools and , SDB will enable users to bypass the conventional financial infrastructure controlled by the State Administration Council (SAC), the military government. Donations made through SDB will directly contribute to the revolution effort and help with the reconstruction of post-revolution Myanmar.
Raising Funds for Revolution
Since the military coup in February 2021, which triggered various sanctions from governing bodies like the U.S. and the EU, the NUG has been devising innovative methods to raise funds to challenge the military junta. These initiatives include issuing revolutionary bonds and auctioning off properties held by military leaders.
The bank, solely owned by NUG’s Ministry of Planning, Finance, and Investment, intends to offer shares to the public in two phases. An initial coin offering (ICO) round will exclusively serve SDB account holders, followed by another ICO round targeting institutional investors. The bank also plans to raise funds through remittances, currency exchanges, loans, and other financial products. In 2021, the NUG assigned .
The revolutionary government has since been recognized as the official government of Myanmar by members of the United Nations and the European Parliament, from October 2021 forward. It has been clear, however, that the U.S. has never officially disclosed any recognition of this matter.
Security Measures and User Goals
Assuring compliance with Basel Accords and Financial Action Task Force (FATF) regulations, SDB will implement multiple layers of data and funds segregation. SDB aims to onboard 100,000 active users within six months.
Despite the challenges facing the NUG, the launch of SDB demonstrates how blockchain technology can be leveraged to challenge established systems and foster political change.
