Bermuda government has launched a digital token to boost the local economy affected by the COVID-19 pandemic. To that end, the Government partnered with a cryptocurrency firm Stablehouse, although authorities insist there is no plan to issue a central bank coin.
‘I’m pleased to have participated in the pilot testing of @stablehouse_io’s digital stimulus token and look forward to its wider rollout to EEZ businesses. It’s a great showcase of Fintech innovation and a step toward making payments more accessible for Bermudian entrepreneurs,’ the Bermudan Premier David Burt twitted.
The token has been in development since early 2019, the pandemic strongly reinforced the need for its launching in the country.
The new token will simplify distribution of financial aid among the citizens. Once the pilot testing is completed, the government will scale the token use nationwide.
The banking system will not be involved in the cryptocurrency project. The chief fintech adviser for the Bermudan Premier, Denis Pitcher, said that banks are bound by laws that make digital assets too risky.