The National Unity Government of Myanmar (NUG), the shadow government in Myanmar, is planning to launch a neobank that will use Polygon, and conduct currency swaps using Uniswap pools, and USDT stablecoins.

The bank will offer currency swaps, fixed deposits, and prize-linked saving accounts. The web-based application will be launched in beta on July 22 and available on Google Play as well as Apple’s App store, according to a bank spokesperson at a virtual conference on Thursday.

The spokesperson stated that the Spring Development Bank will be led by supporters of Aung San Suu Kyi. This includes the Burmese Diaspora. NUG believes that the government and sovereign of Myanmar is the NUG, not the military regime.

SDB’s stated goals are to disrupt the financial system of the country, which is controlled by the military-controlled State Administration Council (SAC). SDB will allow users to donate directly into the revolution via SDB, in addition to banking services. It will deploy funds in the most efficient way and assist with rebuilding Myanmar after the revolution.

Myanmar has been sanctioned in various ways by governing bodies, including the U.S.

Since 2021, the NUG has raised funds to fight against the SAC. The NUG’s fundraising efforts include auctioning a villa owned by army general Min Aung Hlaing and issuing revolutionary bonds. When the NUG regains control, they hope to confiscate the villa and distribute the proceeds of sale to the buyers.

Bank’s sole shareholder is NUG’s Ministry of Planning, Finance and Investment. The spokesperson stated that the SDB shares would be available to the public over two phases.

The first round of the initial coin offering (ICO), which will include the bank’s token, will be available to institutional investors. The bank also said it would raise money through remittances, currency exchanges, loans and other monetary items.

SDB’s goal is to reach 100,000 active users within six months.

The Myanmar kyat, U.S. Dollar, Singaporean dollar and Thai baht are all supported.

A spokesperson for SDB told CoinDesk that “MMK will now be converted to USDT stablecoin.” The rest of the money will remain in its original currency or native currency, to minimize currency exchange risks.

SDB offers a spread of 2% on exchange swaps, which is more attractive than the other options available on the market. At the time this article was published, the exchange rate for 1 Singapore dollar on SDB was 2320 MMK, while the Western Union reference rate was 2164. The bank plans to launch a lottery program where customers will receive tickets in the form of non-fungible tokens.

A spokesperson for the bank said that the bank would comply with Basel Accords as well as Financial Action Task Force regulations (FATF).

The spokesperson stated that “normal savings account balances cannot be lent out.”

SDB’s spokesperson explained that there are different layers of separation of data and funds, as well as different “vaults” to separate customer money.

The spokesperson stated that “Our cyber-security team (including the red team and internal hacker) is working extra hard to ensure users’ data safety.”

Users can deposit foreign currency in the bank to receive stablecoins. If the exchange rate suits them, they can swap their stablecoins for kyats and then use a local agent in Myanmar to convert it into cash.

The spokesperson stated that the two-and-a-half years of experience they have gained in protecting the safety of revolutionary forces would be used to protect the local agents.

Myanmar is home to 55 million people, most of whom are young, tech-savvy and familiar with VPNs. In Yangon, QR code payments are much more common than in Singapore. Although a predominantly cash society, the country has a fast and extensive 5G network with Huawei providing most of the communications.

Read more: Myanmar’s Shadow Government Adopts Tether As Official Currency: Report

Sandali Handagama is the editor.