- Myanmar’s to launch its first crypto-based banking establishment targeting Burmese citizens and diaspora.
- Spring Development Bank utilizes Polygon ecosystem and plans to introduce fiat-pegged stablecoins.
- The bank aims to restore financial autonomy to Myanmar and ensures privacy with web-only platform.
Myanmar’s shadow government has an opportunity to explore enhanced control of the country’s financial landscape after announcing the soft launch of its first-ever crypto-based banking establishment, scheduled for July 22.
While Myanmar’s Spring Development Bank is targeting the 55 million Burmese citizens living in the country, the bank’s main focus lies on the 2 million “Burmese diaspora,” working and residing abroad, frequently sending money back home. The bank’s goal is supported by the technological infrastructure, built on Polygon.
Spring Development Bank aims to enable faster and more efficient domestic and international payments. According to an official employed with the financial institution, cryptocurrency emerged as the clear-cut solution to offer financial aid to both Burmese citizens and their exiled government. Currently, the fees imposed on sending money back to the country through conventional channels could reportedly be as high as 30%.
The source further added,
Spring Development Bank and the blockchain technology it’s powered by is the natural progression in terms of a fundraising strategy for the NUG.
Furthermore, the bank operates with proper licensing and regulation under the NUG-controlled interim central bank of Myanmar.
Moreover, the bank’s CEO noted the launch of this new institution marks the initial stride towards restoring financial autonomy to Myanmar. The governor of Myanmar’s interim central bank, Tin Tun Naing shares similar sentiments.
Naing asserted that the current financial system operated by the military is in a state of disarray, and the Spring Development Bank would play a crucial role in safeguarding the financial assets of the citizens.
The bank official communicated that Spring Development relies on the Polygon ecosystem for sustainability and cost-efficiency. Additionally, they revealed that the bank intends to introduce several new fiat-pegged stablecoins, including the Myanmar kyat, Thai baht, Singapore dollar, and the U.S. dollar. Users will have the option to utilize the bank’s “currency swap” functionality, which is built on UniSwap V3, allowing for the exchange of stablecoins.
Keeping in mind the political state of Myanmar and the safety of its customers, the bank’s user interface has been designed as a “web-only” platform.
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