Bermuda has just launched a stimulus token that would pull the country out of the jaws of the economic decline caused by the coronavirus pandemic.
In the full report, it says that the country presently has no framework or plans to launch a Central Bank digital currency but is ready to go ahead and issue a stimulus token.
To bring the token to life, the country was said to have teamed up with a private company that deals in the issuance of stablecoins. Taking to Twitter, David Burt, the Premier of Bermuda lauded the move as one that showed the great part of what fintech could do to turn an economy around.
He also noted that this partnership will bring about the next level payments method to the citizens of Bermuda as well as open up opportunities to entrepreneurs.
Development of stimulus token rushed up
According to the report, the stimulus token was launched in conjunction with a stablecoin powerhouse, Stablehouse, that deals in the facilitation of payments, and is renowned around Bermuda.
The token which has been in the works since the start of 2019 was rushed up to serve its purpose to the citizens of the region. With the lockdown in place, the country made use of the tokens as a means to help people who were hit by the lockdown that was enforced to control the spread of the virus. The new token would receive a high rate of patronage in a country that does 99% of its activities with the internet.
Stimulus token pilot test ongoing
If the pilot test is complete, the government of the island nation plans to extend the use of the stimulus token across all parts of the nation. Even if there is maximum success in terms of the pilot test, the government has reiterated that they have no plans to produce a digital currency in the years to come.
Presently, the pilot test is going on in three different locations across the country with sales merchants and individuals taking charge of the tests. In a bid to ensure security in storage, the token would be shared on the green wallet which was developed by the same company.