Bermuda tests a local digital dollar as a first step towards the adoption of blockchain-based payments. The Canadian fintech company Bidali, together with the Bermuda government, have launched this pilot project with the intention of accrediting the technology and allowing people to start experimenting with it.
At the moment the digital currency of the project only valid for purchase in the Gosling’s Limited store, Bermuda’s most recognized rum brand, celebrating the reopening of its retail liquor store.
This company is the largest exporter and the oldest trading house in Bermuda. “We are honored by the opportunity to work with Bidali and the FinTech office on this project. By doing so we contribute to the growth and development of this payment solution, which we believe has the potential to generate efficiencies and significant cost savings, ”Ambrose Gosling, Chief Financial Officer of Gosling’s Limited, told the media.
The first phase of the project is coordinated by Penrose Partners, an emerging technology consulting firm from Canada and Bermuda, which conducted workshops to train a group of people on cryptocurrency payment technology.
Although the pilot is conducted on a small scale, it is the first time that the Stellar network has been used for real-world transactions, with the support of a national government.
They seek that Bermuda is integrated according to the global financial system
“It is still very early but since we have a population of 60,000 people, and we are a great place to show what is possible as this technology evolves,” said Denis Pitcher, chief financial technology adviser to the Prime Minister of Bermuda, E. David Burt, when consulted by a medium on the subject.
He also explained that Bermuda you do not have access to payment platforms which are normally used in other countries, such as PayPal or Square, for example. Under these conditions, cryptocurrency platforms can help connect Bermuda to the global financial system.
The Bermuda digital dollar based on the Stellar blockchain, is currently only valid for making purchases at the Gosling’s Limited store. Source: Bernews / bernews.com
Pitcher knows that there are many challenges to achieve the goal of consolidating an emerging digital economy, such as the consensus of the banks, the foreign debt of more than 3 billion dollars, the novelty of this technology, among others. But for now, thank you the laws that have been established in this framework, different companies can participate with their playing field clear.
Laws more friendly to the cryptocurrency ecosystem
Bermuda’s digital dollar initiative began in 2018 when Bermuda launched a new licensing regime for businesses and a regulatory framework was proposed around the cryptocurrency ecosystem, with the Digital Asset Business Act (DABA). Under this law, a very attractive licensing regime was launched so that FinTech, cryptocurrency and blockchain companies have an ideal field where they can experiment and demonstrate their technology.
This medium has previously communicated about other initiatives in Bermuda related to the cryptocurrency sector, such as the payment of taxes with the anchored cryptocurrency or stablecoin USD Coin (USDC) and the development of a digital identity program.