Bermuda set to launch digital stimulus token

02 Sep 2020

Bermuda’s government has unveiled a partnership with stablecoin platform, Stablehouse to launch a pilot program for a digital “stimulus” token.

According to a report by The Royal Gazette, the government plans to facilitate food and other product purchases to bolster its expanding range of contactless payment solutions. 

The program launch was accelerated due to the coronavirus crisis, reports Cointelegraph.

In addition, the government of Bermuda will distribute payments to people who are eligible for COVID-related financial aid utilising the tokens.

All transactions will be managed via a digital wallet on a mobile app. Assets held within the app will be spendable via QR codes and point-of-sale devices.

Speaking of the pilot program, Philippe Bekhazi, chief executive officer of Stable house: “What we are proposing is bypassing all the middle-men, bypassing the banks, and airdrop what is basically 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."

Bermuda Premier Edward David Burt stated that the island is eager to establish itself “as a leader in supporting innovative private-sector digital asset solutions.”

In recent times, Bermuda became the first government to accept the USDC stablecoin for tax payments, as per a report by global finance company, Circle.

At the end of last year, Burt said cryptocurrencies are a great equaliser, ensuring people are not so beholden to large corporations, stressing their role in creating a more equitable society — “that’s the premise of decentralisation”, he added.

Burt also described fintech innovation as “a national strategic imperative.”