From January 2020, Bermuda will begin to accept digital currency as a form of payment for government taxes, fees and services. Premier David Burt made the announcement at the beginning of the Bermuda Tech Summit, saying the acceptance of the payments “will establish Bermuda as an example to other jurisdictions on how to adopt and benefit from the advancement of technology around digital currencies”. Once companies are licensed by the Bermuda Monetary Authority, digital payments will be permitted, in the form of stable coins. A stablecoin is a form of cryptocurrency designed to offer price stability by linking it to a less volatile reserve asset or basket of assets, such as fiat currencies or exchange-traded precious metals. In Bermuda, the stablecoins will be pegged to the US dollar and derive their value from the fiat currency.
Bermuda has passed the Digital Asset Business Act for initial coin offerings. The country has also established a regulatory sandbox allowing digital asset companies to develop their services on a limited scale in order to give supervisory authorities the opportunity to study the best regulatory approach. The government of Bermuda’s believes that there are many start-ups interested in becoming licensed under the Bermuda Digital Asset Business Act and are ready to develop future financial services based on digital dollars.
The full article on Bermuda can be found here.
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