Preface
The Biden administration quickly imposed economic sanctions in response to Myanmar's 2021 military coup, freezing $1 billion in Myanmar funds in the United States.
Two years after Myanmar's spring 2021 revolution began, the National Unity Government (NUG), made up largely of elected officials, representatives of ethnic organizations and anti-coup activists, is still trying to retrieve frozen funds to help fuel the revolution.
After the 2021 coup in Myanmar, the situation changed dramatically. The military controlled 17% of the territory and other areas became battlefields, resulting in more than 3,500 deaths and the arrest of more than 23,000 civilians, underscoring the urgent need for humanitarian assistance.
The United Nations says 17.6 million people in Myanmar are in need of aid, as many as in Ukraine. But aid funding from the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) differs from other countries, with plans to cover only 5 million people.
This lack of funding reveals that the international community is not sufficiently supportive of Myanmar. As people in Ukraine and the United States fight for democracy, Myanmar celebrities highlight the disparity in international support the two countries receive. Ukraine has received substantial aid to fight Russia, but Myanmar has not received corresponding support. If Myanmar receives some aid, it may help shorten the conflict.
Additionally, international diplomacy faces challenges for Myanmar’s shadow government, NUG. Despite controlling 53 percent of the territory and having a liaison office in Washington, D.C., the NUG continues to struggle to seek U.S. recognition. The European Parliament has "supported" the NUG as Myanmar's "legitimate representative", but the road to recognition in the United States is still ongoing.
Funding Myanmar’s struggle for democracy
Faced with the dilemma of trying to retrieve funds frozen in the United States, NUG explored other avenues for funding. Through a unique approach, it has successfully raised millions of dollars from Burmese people around the world. The NUG's Ministry of Finance and Investment secured $9 million through virtual land sales in just two and a half days, and military dictator land bonds sold for $2 million in three days.
By early 2023, the NUG reported having raised more than $132 million to support anti-junta operations. Notably, much of this money comes from Myanmar, which has a relatively low GDP and a population of 54 million, and only 4.5 million Burmese living abroad.
NUG's Finance Minister Tin Tun Naing told The Straits Times that nearly 45% of the funding came from "Spring Revolution Special Treasury Bonds".
In addition to establishing an interim central bank, NUG is also exploring digital financial solutions, such as the recently launched Spring Development Bank powered by the Polygon blockchain. This bank is licensed by the Central Bank to support transactions in Myanmar Rupee, US Dollar, Singapore Dollar and Thai Baht.
At the press conference, Tin Tun Naing said that NUG plans to introduce international funds through the Spring Development Bank and is working to restore the US$1 billion frozen by the United States. With the momentum of the revolution, he expected progress in this regard.
While NUG's success in raising funds is encouraging, it also reflects the reality that Myanmar's struggle for democracy relies mainly on its own people, as the international community largely ignores its plight. This also shows the potential value of Bitcoin as a sovereign financial instrument.
Myanmar should launch Bitcoin bonds
In a situation of difficulty and limited international support, NUG should refer to El Salvador’s “Bitcoin Bond” model. NUG can issue digital “freedom bonds” to attract global investors who support democracy in Myanmar. The bonds could be partially denominated in Bitcoin while remaining denominated in U.S. dollars, with specific interest rates and lock-in periods set to attract investment.
In the future, NUG may offer investors permanent residence status as an additional benefit. This strategy not only promotes democracy, but also gives investors real returns and opportunities to participate in meaningful causes, helping Myanmar break through its diplomatic isolation.
Although NUG currently has the establishment of a central bank as its top priority, it will consider adopting Bitcoin standards in the future.
A representative metaphor of the Bitcoin Myanmar Initiative: "Myanmar's current attitude towards Bitcoin is similar to the misunderstanding of the Internet in the early Internet era. At that time, the Internet was misunderstood as just a place for teenagers to date or engage in bad behavior. But this misunderstanding was eventually Correction, realize that the Internet is actually a technology open to the free world.”
The representative believes that Myanmar is at a turning point in accepting Bitcoin, similar to the rise of the early Internet.
Although the Bitcoin standard is still a cutting-edge concept for Myanmar, it is already gaining traction globally. For example, 2024 U.S. presidential candidate Robert F. Kennedy Jr. highlighted Bitcoin’s role in the global human rights movement, specifically mentioning Myanmar, suggesting that Bitcoin could contribute to positive changes in Myanmar.
in conclusion
Many people say, "Be born in trouble, die in peace." The situation in Myanmar is that when the traditional financial system is blocked, it has no choice but to develop towards digital finance. Among them, the Spring Development Bank established with Polygon, I think has proved that one direction, another area The future of the key role blockchain can play in finance.
Myanmar is indeed undergoing financial and political transformation, and the use of blockchain and digital currency has the opportunity to break diplomatic and economic isolation. However, this innovation requires the support of education and infrastructure to ensure its effectiveness. The international community's neglect of Myanmar also reflects that in the era of globalization, the destinies of all countries are inseparable.
References
In The Absebce of International Support, Myanmar’s Exiled Government Should Explore a Bitcoin Bond By Win Ko Ko Aung
https://bitcoinmagazine.com/culture/myanmars-exiled-government-needs-a-bitcoin-bond-strategy
Further reading
Unexpected country of crypto, Vietnam ranks first in cryptocurrency adoption rate in the world
https://www.chainlighting.io/share/view/1234
