{"id":28075,"date":"2020-09-02T16:53:06","date_gmt":"2020-09-02T13:53:06","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=28075"},"modified":"2025-08-27T09:31:08","modified_gmt":"2025-08-27T06:31:08","slug":"bermuda-issues-tokens-to-support-residents-spending-amid-crisis","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bermuda-issues-tokens-to-support-residents-spending-amid-crisis\/","title":{"rendered":"Bermuda issues tokens to support residents\u2019 spending amid crisis"},"content":{"rendered":"<p>The Bermuda government announced a pilot programme to encourage payment for goods and services with tokens amid the economic impact of the COVID-19 pandemic. The partner is the local payment platform Stablehouse, which uses a solution from Blockstream.<!--more--><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">The digital stimulus pilot token is based on Blockstream\u2019s <a href=\"https:\/\/twitter.com\/Liquid_BTC?ref_src=twsrc%5Etfw\">@Liquid_BTC<\/a> blockchain protocol while the <a href=\"https:\/\/twitter.com\/hashtag\/BlockstreamGreen?src=hash&#038;ref_src=twsrc%5Etfw\">#BlockstreamGreen<\/a> app will enable payments via a point-of-sale terminal provided by <a href=\"https:\/\/twitter.com\/stablehouse_io?ref_src=twsrc%5Etfw\">@stablehouse_io<\/a>.<\/p>\n<p>\u2014 Blockstream (@Blockstream) <a href=\"https:\/\/twitter.com\/Blockstream\/status\/1300811235466850305?ref_src=twsrc%5Etfw\">September 1, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The project uses the Bitcoin sidechain Liquid Network. The BlockstreamGreen app will enable payments via point-of-sale terminals provided by Stablehouse. Initially, the token will be tested in three towns by a defined group of merchants and residents.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">I\u2019m pleased to have participated in the pilot testing of <a href=\"https:\/\/twitter.com\/stablehouse_io?ref_src=twsrc%5Etfw\">@stablehouse_io<\/a>\u2018s digital stimulus token and look forward to its wider rollout to EEZ businesses. It\u2019s a great showcase of Fintech innovation and a step toward making payments more accessible for Bermudian entrepreneurs. <a href=\"https:\/\/t.co\/YUERr30UED\">pic.twitter.com\/YUERr30UED<\/a><\/p>\n<p>\u2014 Premier David Burt (@BermudaPremier) <a href=\"https:\/\/twitter.com\/BermudaPremier\/status\/1300788034020012032?ref_src=twsrc%5Etfw\">September 1, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote>\n<p>&#8220;A key part of the drive to become a leader in digital assets is not only creating a regulatory framework. This should also include hands-on work with products created by companies that have found a home here,&#8221; the prime minister said.<\/p>\n<\/blockquote>\n<p>In 2019, the government of this British Overseas Territory allowed the payment of taxes and government fees in the stablecoin USDC. Officials described the decision as part of a broader initiative to use decentralised financial protocols and services. A digital identity system is also envisaged.<\/p>\n<p>Development of the incentive tokens began this year as part of a programme to build an ecosystem based on digital currencies. The COVID-19 pandemic accelerated its rollout due to the need for rapid distribution of financial assistance to residents.<\/p>\n<blockquote>\n<p>&#8220;We aim to put a wallet on every phone in Bermuda,&#8221; noted Denis Pitcher, the prime minister\u2019s fintech adviser.<\/p>\n<\/blockquote>\n<p>According to the official, authorities faced difficulties in distributing unemployment benefits. The process was complicated by the introduction of strict isolation measures in a context where a portion of the population lacks access to banking services.<\/p>\n<p>According to Pitcher, Bermuda is an ideal testing ground for digital payments. The country is home to just over 71,000 people, 99% of whom are internet users, 87% have access to it via mobile phones.<\/p>\n<p>Pitcher added that the backbone for deploying the system would be the infrastructure left behind by British and American troops after World War II\u2014from airports and hospitals to energy infrastructure.<\/p>\n<blockquote>\n<p>&#8220;We have a truly suitable environment for mass adoption and subsequently improving the user experience, which can then be scaled to a city with millions of residents or a country with hundreds of millions of citizens,&#8221; the adviser explained.<\/p>\n<\/blockquote>\n<p>Pitcher does not think the initiative will lead to a central bank digital currency (CBDC).<\/p>\n<blockquote>\n<p>&#8220;We do not plan to create a unifying technical solution that will solve all problems of digitising money, as its implementation remains unclear,&#8221; the official explained.<\/p>\n<\/blockquote>\n<p>The Bermuda government engages private licensed organisations, such as Stablehouse, to issue tokens on its behalf. The reason is their speed in developing the technology.<\/p>\n<p>According to Pitcher, local banks will not play a key role in the pilot. This is explained by their correspondent banking links with large financial institutions that do not welcome such initiatives.<\/p>\n<p>An expert says banks struggle to stay at the forefront of technological innovation due to regulatory requirements. Stablecoins, such as USDC, in his view, create a new role for them.<\/p>\n<p>Earlier, the Central Bank of the Bahamas <a href=\"https:\/\/forklog.com\/en\/news\/bahamas-central-bank-records-sand-dollar-on-balance-sheet-at-48000\">released<\/a> the digital currency Sand Dollar for $48 000.<\/p>\n<p>Subscribe to ForkLog news on <a href=\"https:\/\/twitter.com\/ForkLog\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Twitter<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Bermuda government announced a pilot programme to encourage payments for goods and services with tokens amid the economic impact of the COVID-19 pandemic. The partner is the local payment platform Stablehouse, which uses a Blockstream solution.<\/p>\n","protected":false},"author":1,"featured_media":26216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1917,596],"class_list":["post-28075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bermuda-islands","tag-tokens"],"aioseo_notices":[],"amp_enabled":true,"views":"10","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/28075","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=28075"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/28075\/revisions"}],"predecessor-version":[{"id":28076,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/28075\/revisions\/28076"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/26216"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=28075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=28075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=28075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}