The government of Bermuda had teamed up with payment and FX exchange Stablehouse to launch a test pilot program for a digital stimulus token.
The goal of the pilot is to explore the viability of digital tokens in the purchasing of food, essential products and services.
The pilot has begun among a select group of consumers and merchants to provide initial feedback and validation on the use of a stimulus token for in-person payments.
The project is underpinned by a digital token created by Stablehouse, with additional phases of the pilot being proposed in collaboration with the Bermuda Economic Development Corporation.
Bermuda Premier David Burt said: “Bermuda is keen to establish itself as a leader in supporting innovative private sector digital asset solutions and to work with locally licensed companies to drive digital asset adoption.
“A key part of that is not just creating regulatory frameworks but also actually working with and using the products created by companies that choose Bermuda as their home.”
Check out our CEO @philippebek on @bcdialogues podcast exploring how stablecoins can offer real world crypto payment solutions and move the industry closer to mass adoption with hosts @kkposts and @technikhil #stablecoins https://t.co/WTJNyKaraJ
— Stablehouse (@stablehouse_io) August 6, 2020
The stimulus token project has been in development since late 2019 as part of the Government of Bermuda’s wider currency standard initiative to support the adoption of digital currencies on island.
Those plans have been accelerated due to the COVID-19 outbreak as the need for fast and effective dissemination of financial aid to the population through digital payments technology has become more apparent.
Philippe Bekhazi, CEO of Stablehouse, added: “The COVID-19 Pandemic has laid bare the need for digital payments solutions to help businesses survive and overcome an uncertain and challenging market backdrop.
“The stimulus token is designed exactly to do that, by giving merchants more accessible and practical payments options in the evolving digital age.
“For consumers, it alleviates the dependency on cash amid the ongoing health concerns, while providing an easy and convenient payment channel. Together, with the Government of Bermuda, we aim to set a benchmark for all governments around the world to pursue digital stimulus solutions.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.