On Tuesday, the Government of Bermuda announced its pilot program alongside with local private payments platform Stablehouse for a digital stimulus token that will benefit both residents and merchants of the islands.
NEW: Bermuda is looking to speed up the distribution of financial aid to its citizens by trialing a new digital stimulus token.@stablehouse_io @BdaGovernment@iamsandali reports https://t.co/MCwuFX5ra4— CoinDesk (@CoinDesk) September 1, 2020
Coindesk shared that Bermuda Government last year began developing a blockchain-based digital ID system and announced that the public could pay their taxes with USDC stablecoins. As a support to the digital market, the state aimed to adopt a comprehensive crypto ecosystem by developing a stimulus token that will fast-track transactions on the island. In a press release, Premier Burt said that Bermuda is keen to establish itself as a leader in supporting innovative private-sector digital asset solutions and to work with local licensed companies to drive digital asset adoption. A key part of that is not just creating regulatory frameworks but also actually working with and using the products created by companies that choose Bermuda as their home.
As the current pandemic continues to challenge the world, the government decided to accelerate and launch the plan for the stimulus package based on cryptocurrency. Each government across the world works on its stimulus package to aid its citizens and to assist the badly beaten industries by this disease to continue its operations. Bermuda, on the other hand, plans to administer its financial aid through digital tokens.
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 Bermuda-based startup, Stablehouse, partnered with the state and served as its technical arm to help the accomplishment of this project and its goals. The firm will handle the issuance and the redemption of the tokens dubbed as the Bermudian Dollar Tokens or (BMDTs). The local news outlet reported that the said tokens are sent to a digital wallet on a recipient’s phone and can be used to pay for goods and services at participating vendors. Because it has a QR code feature, it will be easier for the retailer or vendor to accept payments by scanning the code on a small point-of-sale device.
Delighted to announce we have commenced a pilot program for a digital stimulus token in collaboration with the Govt. of Bermuda. Together, we will drive the adoption of digital currencies in Bermuda. Read more here: https://t.co/Ex2lglNmTr #stablecoins #digitalstimulustoken— Stablehouse (@stablehouse_io) September 1, 2020
When asked about his thoughts of the project, Chief Executive Officer of Stable house Philippe Bekhazi said, “what we are proposing is bypassing all the middle-men, bypassing the banks, and airdrop what is an IOU from the government to the people. You will go to a website and register your ID, and the Government will airdrop to you a certain amount of money. It will be immediate and you will have it on your phone wallet."