The politics of a country directly impact its economy and methods of its handling. That is exactly what’s playing out in Myanmar right now. While the other nations are mulling over the regulations, this Southeast Asian country is all set to launch a full-fledged crypto bank. This may sound like an uplifting move to crypto enthusiasts, but underneath everything, it is about a power struggle.
Why a Crypto-Based Bank?
It should be noted that the current incumbent administration is not a publicly-elected government. It is actually a military council that executed a coup to take control of the country. For obvious reasons, the ousted government does not want the military to get hold of its banks and resources. So, they came up with an ingenious scheme to raise funds laterally and fight the army regime.
The exiled party National Unity Government (NUG) greenlighted the project and named it Spring Development Bank. Its motto is to reach the Burmese diaspora living outside the country and to convince them to choose crypto for remittances. Moreover, it would appeal to the 55 Million citizens of the country to use digital assets too.
In an official statement, a bank official said that it would make international as well as domestic payments faster and more efficient. At the same time, it would try to access a whole spectrum of financial products. Additionally, it would bring more anonymity and security to the transactions. The bank will also use the technology to raise funds to support different endeavors of the party.
Notably, the government has already issued the license to the bank through the central bank of Myanmar. The bank’s CEO stated that the launch of SDB is the cornerstone of the financial freedom of Myanmar. According to the central bank’s governor, Tin Tun Naing, it will bring a new revolution in the country’s history.
Rendering the Army Financially Powerless
The governor stated that the military-run government is unable to handle the country’s economy. However, they are unwilling to cede control. So, NUG has taken the initiative to safeguard the nation’s financial assets of its citizens. As per the statement of the governor, this step would prevent the incumbents to use the taxpayers’ money in an unregulated manner.
He also gave some examples explaining the ways through which crypto will help the country. The governor said that non-resident Myanmarians currently pay 30% of their money transfer. Using crypto, this amount will get decimated and the country will get benefitted.
Disclosing the technical information about the bank’s structure, he said that they built it on a Polygon network. He attributed it to cost as well as possibilities of long-term usage. The bank will issue a new range of coins to the citizens who will be able to access them by doing a currency swap.
The blockchain will execute the transaction of various cryptos. The platform will only be available on the website right now. This is done to save citizens from possible imprisonment. The official said that the army can check people’s phones and persecute them if they have an app that supports the opposition.
Takeaway
Regardless of the purpose and context, the incident exhibits the sheer power of crypto to the world. If the NUG succeeds in its attempt, it would be a shining example of blockchain empowering a nation.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/07/21/myanmars-ousted-government-backs-the-launch-of-crypto-based-bank/