Bermuda paves the way for fintech - ICLG.com

In September 2018, Bermuda’s Digital Asset Business Act 2018 (DABA) was launched, following its 201...

In September 2018, Bermuda’s Digital Asset Business Act 2018 (DABA) was launched, following its 2017 announcement that it would embrace digital currencies and blockchain technology. Now, it has launched a fintech initiative aimed at providing clarity in the market.

Earlier this month, Bermuda unveiled its Currency Standard Initiative, which is aimed at driving the adoption stablecoins – cryptocurrencies linked to a regular asset, in this case the United States dollar.

“We will turn Bermuda into a global innovation sandbox to advance the digitisation and unbundling of traditional finance to drive increased access to financial services and act as a showcase model for other jurisdictions to copy,” said Fintech Bermuda, a government agency, in a statement.

The initiative will start with the government committing to accept 1:1 US dollar backed stablecoins which are licensed by the Bermuda Monetary Authority, for government fees, services and taxes.

In future, it will explore paying out stablecoins to contractors and civil servants who opt-in to the scheme, as well as social programme payments.

The initiative will be supported by the US Dollar Coin and CENTRE consortium run by online payments company Circle and digital currency exchange Coinbase, fellow exchanges Binance, Stably and TrustToken, as well as social network HubCulture.

Further support is coming from blockchain technology company ConsenSys, whose global fintech co-head Patrick Beraducci and Thomas Rush, representing its investment arm, attending the launch, as well as using the company’s Codefi Payments product to allow merchants and governments to accept digital payments.

Offshore law firm Conyers, Dill & Pearman’s director and head of fintech, Chris Garrod said in a firm blog post in August last year, that the DABA is a “further signal that Bermuda wants to become a true fintech leader. This is certainly not the last legislation we are likely to see in this space”.

Elsewhere in the fintech space this month, Ashfords added fintech expert Cynthia Ma as a legal director in the corporate team in London.