Bermuda, a small island nation with a population of only 60,000 operates without a monetary policy or central bank. Instead, the Bermuda Dollar functions as a non-digital token, where each unit issued is backed by one USD in reserve, making it a fully USD-reserved currency.
In Sep 2020, Bermuda launched a digital token, a stable coin to stimulate the local economy with hand-outs following the COVID-19 pandemic. The token was launched in partnership with Stablehouse, a Bermudan digital payments firm. Through a point-of-sale terminal provided by Stablehouse, citizens can conveniently make payments at merchant stores.
Despite the introduction of the digital token, the Bermudan government currently has no intentions of developing a central bank digital currency, as they believe the potential benefits are not compelling enough.
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