On Tuesday, the Government of Bermuda announced that it has rolled out a pilot initiative for digital stimulus token. The program is being run in conjunction with Stablehouse, a Bermuda-based payments startup. The program is expected to offer crucial feedback on whether digital tokens can be used for buying essential goods and services in the country.
Stablehouse claims to be ‘a global virtual currency clearing house’ and facilitates the exchange of stablecoins. The startup is being advised by ex-Tether executive, Phil Potter, who will offer his expertise to the government in the provision of Bermudian Dollar Token, BMDT.
The government is seeking to collect vital information and data on whether merchants will readily accept digital tokens as a payment method. The pilot phase will also establish whether Bermudians are ready to use the tokens to buy essential goods and services.
At the moment, the government has recruited three merchants as well as 20 individuals who were given a stipend of free BMDTs that they use to test the initiative.
Speaking to Decrypt, chief fintech advisor to Bermudian prime minister, Denis Pitcher explained that the project will kick-off with a small number of participants but will gradually expand.
“Our ultimate goal is to end up with a wallet on every phone because wallets are the browser of the future when it comes to money and the future of finance.”
The partnership will see Stablehouse offer point-of-sale services to the merchants as well as provide its Green Wallet that enables clients to store coins while offline easily. The startup will also be handling issuance as well as redemption of the BMDT. It's important to note that every token is backed by the Bermudian dollar, which is also pegged to the US dollar.
The token will run on Blockstream’s Liquid, which is a sidechain protocol that is designed to link together various exchanges.
The token stimulus initiative has been in the works since last year and is part of a comprehensive plan to introduce digital currency on the island.
Bermuda has implemented various crypto-friendly policies in the recent past. For instance, in October last year, the island allowed its residents to clear their taxes and fees using US dollar-backed stablecoins.