The shadow government of Myanmar, the National Unity Government (NUG), plans to create a neobank, whose activities will be carried out on the Polygon platform.
The virtual financial institution, the launch of which is planned by the shadow government, will provide consumers with services such as currency swaps, savings accounts that will be linked to prize funds, and term deposits. The digital bank will carry out currency swaps through Uniswap v3 pools and USDT stablecoins.
From July 22, the beta version of the virtual bank mobile application will be available on the Google Play and App Store online platforms. The corresponding information was reported by a representative of a financial institution at a virtual conference that took place on July 20.
Spring Development Bank (SDB) is headed by supporters of Aung San Suu Kyi, who from 2016 to 2021 was the Minister of Foreign Affairs of Myanmar and held the position of state Adviser, corresponding in terms of powers and responsibilities to the position of the Prime Minister. Two years ago, after a coup by the junta, she ended up in prison. The financial institution will be focused on serving Aung San Suu Kyi’s supporters.
NUG claims that it is the former foreign minister, who is currently in prison, who is the legitimate sovereign and denies the legitimacy of the military junta.
SDB sets global goals for itself. The Bank, as part of its activities, intends to provoke the collapse of the financial system, which is currently under the control of the military government, the State Administration Council (SAC). Clients of the financial institution will be able to donate to the implementation of revolutionary efforts in Myanmar. The Bank intends to transfer these funds to certain organizations through the most effective channels. The ultimate goal in this case is the restoration of post-revolutionary Myanmar.
In February 2021, the US and the EU imposed sanctions on this country. The reason for the restrictive measures is a military coup. As a result of the junta’s actions, the civilian Government lost control of the State. One of the consequences of the military coup was massive violations of human rights in Myanmar.
NUG has been raising funds to challenge SAC’s decisions since 2021. The Government of National Unity issues revolutionary bonds and sells villas in the auction format, the owner of which is Army General Min Aung Hlaing. NUG also states that in case of the return of the authority, it will confiscate the house of the general.
The Ministry of Planning, Finance, and Investment of the Netherlands is the sole shareholder of neobank. The shares of the digital financial institution will be offered to the public in two stages. Only neobank account holders will participate in the round of pre-placement of coins using their own token. This round will initially be offered to institutional investors. The financial institution also intends to raise funds through money transfers, loans, currency exchange, and other banking services.
Neobank aims to attract 100,000 active users during the first six months of its operation. The financial institution will support four currencies, including Myanmar Kyat (MMK), the US dollar, the Singapore dollar, and the Thai baht. MMK will be exchanged for the USDT stablecoin. The remaining funds will be stored in the original or national currency in order to minimize the risk. At the end of 2022, NUG recognized the Tether (USDT) stablecoin as a legal tender.
When using SDB, the spread on the currency swap will be equal to 2%. This bid is more attractive compared to other offers available on the market. Neobank also intends to launch an electronic lottery program and issue tickets to customers in the form of non-fungible tokens (NFT).
The financial institution is committed to compliance with the Basel Agreements and the provisions of the Financial Action Task Force (FATF). The bank will not lend the usual savings account balances.
The SDB representative said that the financial institution has a kind of internal system for separating the level of data, funds, and vaults to differentiate customer money. He also stated that a team of cybersecurity specialists is making efforts to protect consumer’s personal information.
When exchanging currencies, customers will be able to deposit foreign currency into the bank and receive stablecoins in return. At the time of the most acceptable exchange rate, consumers will be able to exchange a stablecoin in foreign currency for a stablecoin tied to a kyat, and with the help of a local agent, exchange it for cash on the territory of Myanmar.
The bank stated that it would protect its Myanmar agents, relying on the experience of ensuring the security of the revolutionary forces, without specifying the appropriate measures.
As we have reported earlier, Fintech Farm Launches Neobank in Vietnam.
