Bermuda government launched a digital token to stimulate the local economy following the global pandemic. The Bermudan government partnered with a private stablecoin firm to launch the token but insists it has no plans to issue a central bank digital currency. The Bermudan Premier David Burt announced the launch of the new token on Twitter, describing it as a “great showcase of Fintech innovation and a step toward making payments more accessible for Bermudian entrepreneurs.”
The stimulus token is launched in partnership with Stablehouse.
The stimulus token was launched in partnership with Stablehouse, a Bermudan digital payments firm. While the stimulus token has been in development since early 2019, the global pandemic heightened its need in the small island nation. And because of the lockdown, the government struggled to distribute financial aid to the citizens. The new stimulus token will make this easier, with the country’s 99% internet penetration rate making a digital currency the ideal solution. Once the pilot test of the token is completed, the government intends to scale the use nationwide. However, the country has no plans issue a CBDC.
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. pic.twitter.com/YUERr30UED
— Premier David Burt (@BermudaPremier) September 1, 2020
The token is being tested in three locations with consumers and merchants.
Currently, the stimulus token is being tested in three places with a few consumers and merchants. After the pilot project is finished, the government intends to scale the use nationwide. Bermudans will be able to make payments at merchant stores through a point-of-sale terminal provided by Stablehouse. The stimulus tokens will be stored on the Green Wallet app, a digital payment platform focusing on ethical and sustainable products. According to the announcement, the local banking system will not be involved in this project. The chief fintech adviser for the Bermudan Premier, Denis Pitcher, said that banks are bound by laws that make digital assets too risky. He believes that this will change in the future as regulations evolve, reported Sahil Kohli.