Bermuda Accelerates Economic Development With Blockchain And Cryptocurrency Capabilities

In an announcement today, David Burt, premier and minister of finance of Bermuda, has revealed three important developments for the island nation, two of which are based on agreements with blockchain and cryptocurrency giants and form part of Burt’s FinTech strategy to bolster Bermuda’s economy.

First, SS&P Global Ratings has elevated Bermuda’s credit to positive, affirming its “A+ long-term sovereign credit and senior unsecured debt ratings,” the first upgrade to the country’s credit rating since 2010. According to the press release, SS&P has also confirmed “a-1 short-term ratings and its AA+ convertibility assessment.”

The improved credit ranking reflects Bermuda’s prospects and growing economy, rewarding a period of positive real economic growth in Bermuda at a time when the country’s fiscal deficit has also narrowed.

The second development is a continuation of Bermuda’s active strategy to form FinTech, blockchain, and virtual currency capabilities. The government’s goal is to define a “third pillar” of industry based on the FinTech sector to complement its existing economic base of financial services and tourism.

Bermuda has already formed substantial links with cryptocurrency exchange Binance as part of its FinTech initiatives. A recent memorandum of understanding (MoU) established $15 million of funding from Binance to Bermudan programs for education and blockchain startups. In the latest announcement, Binance has promised to create 40 jobs by developing its compliance base in Bermuda; it further asserted its intention to develop a cryptocurrency exchange there “as soon as is practical.”

The third announcement is that of a new MoU with blockchain company Medici Ventures, which has pledged to make Bermuda its “laboratory for the most leading edge blockchain innovations coming out of its stable of a dozen blockchain firms.” Medici wants to create at least 30 jobs in Bermuda over three years and nurture a pipeline of software development engineers. The blockchain technology developer, investor, and incubator has also committed to the future development of a trading platform for security tokens in Bermuda.

On April 27, the government of Bermuda, led by Burt, successfully passed new legislation for cryptocurrency ICOs with the goal of creating a regulatory framework to encourage the significant interest surrounding them.

The positive economic outlook for Bermuda is likely reinforced by its aggressive initiatives for FinTech, blockchain, and cryptocurrencies and could see the small country become a thriving digital hub.

Melanie Kramer is a freelance FinTech, blockchain, and cryptocurrency writer based between France and Canada. Melanie has studied, and retains an avid interest in, global politics, business, and economics.

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