In partnership with the firm Stablehouse, the Government of Bermuda has begun developing pilot tests for the implementation of a stimulus token with which it hopes to revive the island's economy.
The negative consequences of the current economic crisis, caused by the COVID-19 pandemic, are leading several governments to consider new strategies to strengthen their economies. In this regard, the Government of Bermuda, recognized for its friendly and innovative adoption of technology, is seeking to strengthen its economy. blockchain and cryptocurrencies, , announced that it will begin developing pilot tests for the implementation of a new stimulus token, which will facilitate the purchase of goods, products and services within the territory.
In the development of this new token, the Government of Bermuda has the support and advice of the platform Stablehouse, who assures that the new token will allow exploring the viability and effectiveness of digital assets for the acquisition of essential goods and products. Likewise, the pilot tests that are currently being carried out on the island began with a select group of private merchants, and according to the results of the tests and research, the new system can be expanded to all businesses and retailers that wish to participate in this innovative project.
For its part, the new stimulus token is designed on the side chain (sidechain) Liquid Network developed by Blockstream, and will be available through the Stablehouse Payments app, which will be launched in the coming months.
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Benefits of Bermuda's new stimulus token
In addition to allowing citizens to purchase essential goods, products and services, the implementation of this new token also seeks to enable the government to distribute social aid and stimulus vouchers to less-favored families in a safe and efficient manner. Through the new token, citizens will be able to receive and make contactless payments, as well as receive state financial aid without delays.
On the other hand, through this project, unbanked people will also be able to enjoy many benefits; for example, they will have access to a financial system that is convenient, safe, accessible and available at all times.
The new financial strategies implemented by the Government of Bermuda seek to position the island as a leader within the digital asset industry, and if positive results are obtained with the tests currently being carried out, the island will begin a second phase that will have the participation of the Bermuda Economic Development CorporationIn this second phase, the Government of Bermuda plans to incorporate businesses and retailers that belong to the Economic Empowerment Zones of the island.
During the announcement, David Burt, Bermuda's Premier stated that:
“Bermuda wants to establish itself as a leader in supporting innovative private sector digital asset solutions and working with locally licensed companies to drive digital asset adoption. A key part of that is not only creating regulatory frameworks, but also working with and utilizing the products created by the companies that choose Bermuda as their home.”
Although the idea of boosting the economic development of the region through a stimulus token may not be entirely clear at the moment, the potential behind this development can be innumerable and of great benefit.
Cryptocurrency development in Bermuda
Since 2019, the Government of Bermuda has been implementing plans and strategies to strengthen its support in the development and advancement of cryptocurrencies and blockchain technology. For example, the adoption of USDC allows the island's citizens to pay their taxes through this currency linked to the dollar.
Likewise, the island's government also began the development of an innovative digital identity system based on blockchain and smart contracts called Perseid e-IDThis project seeks to create a higher-level system for efficient data registration and management, through which citizens, companies and government entities will be able to authenticate digital identity and authorize data exchange between interested parties.
Now, with the development of a stimulus token, the government is looking to get citizens to adapt to using digital assets for everyday activities, such as purchasing essential goods. Finally, Bermuda's Chief Financial Technology Advisor, Denis Pitcher, said that with the pilot tests the government hopes to find out if citizens are open to trying this new payment model and how easy or complicated it may be.
“We are starting with a small group, and we will gradually expand as we go along… Our ultimate goal is to have a wallet on every phone, because these software will be the tools of the future when we talk about money and what is coming for the financial ecosystem.”
Without a doubt, the development of cryptocurrencies, digital assets and blockchain technology is impacting the whole world, whether through stimulus tokens as in Bermuda, or through the development of CBDC digital currencies as in China, Japan, Lithuania, Spain and many more countries.
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