Bermuda’s Prime Minister David Burt says that digital assets are the future, and he doesn’t worry that his country will be left out. He made this statement while attending the 2022 Consensus conference.
The dramatic collapse of TerraUSD has many investors reconsidering their options and thinking twice before buying more stablecoins. Though the stablecoin was pegged to the US dollar, it wasn’t as stable as expected. This has left investors who were happy to buy stablecoins before, not wanting to buy and having nothing to show for it. This is a diametrically opposite view to that of Bermuda’s leader. According to Mr. Burt, the Terra incident highlights the need for strong regulation. He also said that his goal was to make Bermuda the safest place in the world for assets which are cutting edge and innovative.
Mr. Burt also said that Bermuda should be the world’s hub for stablecoins. These will be issued in an environment which is closely regulated to protect citizens and investors. An announcement made last week indicated that Bermuda had issued its first banking license for digital assets. According to the premier, it has been a long wait for such activity and that investors should have faith. Bermuda as a nation is taking thoroughness as well as credibility to the next level. This is done to ensure that people’s savings are protected.
The country’s regulators are taking their responsibility to ensure that all risks have been assessed and eventualities covered. Jewel Bank, which got the license to issue digital assets, plans to issue a stablecoin linked to the US dollar. This will be issued in the fall of 2022. The idea is to peg Bermuda’s currency and others, over time.