Bermuda recently made a bold step into the crypto world by revealing they were testing a digital token, which would be used as part of the government’s stimulus measures. Users of the tokens will be allowed to buy essential items such as food using the tokens.
Details of the Test
The test program was established in July 2020 with 20 people at a local shop. Plans are underway to expand the digital token to all of the territory’s islands. The stimulus token was launched in an attempt to revive the economy after the downturn caused by COVID-19. Bermuda issues a stimulus token in the form of a stablecoin, which will help to prevent wild fluctuations in price.
The stimulus token is backed by fiat bank deposits and was created by the Stablehouse coin-clearing firm. It is designed for use by businesses in Bermuda that the government is trying to help. Bermuda already accepts payments for taxes in crypto as well as fees for government services in the USD stablecoin. There are also reports that the island’s government officials have met with the Libra coin officials. Project Libra is a stablecoin project that is being led by Facebook and other partners in the fintech world.
Bermuda wants to use various stablecoin whose value is backed in full by fiat deposits and comply with their regulations. The government hopes to use decentralized finance applications to make it easier to access loans by residents.
Bermuda is perfect for Digital Tokens
According to Premier Burt, the head of the Bermuda government, they were the ideal test-bed for the technology. Burt previously worked as an ITS consultant and a developer of mobile apps before he decided to enter politics.
Bermuda is a relatively small territory, which makes it a great place to test digital tokens. It is a self-governing British overseas territory and it has a population of over 71,000. Bermuda has been looking for ways to offer financial services to its residents, some who do not own bank accounts but own smartphones. According to Premier Burt, the territory is trying to position itself as a leader in the budding digital economy based on DeFi and digital tokens.