Bermuda government tests stablecoin BMDT

Bermuda government tests stablecoin BMDT

The government of Bermuda has announced the start of testing a digital currency, the Bermudian Dollar Token (BMDT), linked to the Bermuda dollar.

Denis Pitcher, chief financial adviser to the Prime Minister of Bermuda, said that BMDT will be used to distribute financial assistance to the population. The development of this stable cryptocurrency has been carried out since the end of last year by the startup Stablehouse.

Authorities intend to study whether Bermuda residents can pay with digital coins for food and other necessities. To date, three vendors and 20 individual users are participating in BMDT testing. Pitcher said that in the future, a special wallet for the digital Bermuda dollar will be introduced, which will be available to about 60,000 residents of Bermuda.

Stablehouse, which was opened last year by XBTO founder and Interim CEO Philippe Behazi, will be responsible for the BMDT release. Stablehouse will also provide special terminals in retail outlets and a green Wallet that will allow you to store stablecoin offline. BMDT will operate on the Liquid sidechained from the company Blockstream. Stablehouse management added that the position of adviser in their firm is held by Phil Potter, a former top Manager of Bitfinex and Tether. In addition to Poter, stablehouse consultants include Galaxy Digital partner and founder David Namdar) and Blockstream’s Director of strategic Affairs, Samson Mow.

Pitcher said that in October, the authorities in Bermuda may allow residents to pay taxes in any stablecoin pegged to the us dollar. This initiative is aimed at widespread adoption of digital currencies on the Islands. The idea came from the government of Bermuda during the coronavirus pandemic, as it will be faster and more convenient to transfer benefits to the population in digital currencies. According to the authorities, in this case, they will be able to transparently track when and in what amount each individual received financial assistance.

Recall that in October 2019, the government of the island state has already started accepting payments for taxes, fees and public services in the stable cryptocurrency USD Coin (USDC). In addition, last fall Bermuda began the development of the system of identification of citizens on the basis of the blockchain.