BERMUDA-Government advancing digital financing in Bermuda

HAMILTON, Bermuda, CMC – The Bermuda government says digital financing could be the next chapter in the island’s quest to remain one of the world’s leading insurance and reinsurance centers.

Premier Davis Burt said that when his administration first set out its FinTech strategy, some questioned whether digital assets had a future and whether Bermuda should be involved at all.

“Today, serious companies have established themselves here, investment has followed, and Bermuda has earned international recognition for its leadership in digital asset regulation and innovation,” he said, adding “we have built a respected regulatory framework, attracted world-class businesses, developed a growing digital asset insurance market, and created an environment where innovators, investors, regulators, and policymakers come together to help shape the future of finance”.

Burt, who is also the Finance Minister, told Parliament that, for the second consecutive year, the Bermuda Digital Finance Forum demonstrated just how far Bermuda has come.

He said the recently held Forum brought together some of the most influential people and institutions shaping the future of finance, technology, regulation, digital assets, artificial intelligence, and tokenized financial products.

He said that several important announcements were made during the event, including the announcement by the Stellar Development Foundation of its plans to support a Digital Bermuda Dollar on the Stellar blockchain network and the Bermuda Monetary Authority granting Bitcoin Suisse International dual approvals under the Digital Asset Business Act and the Investment Business Act, allowing that entity to provide regulated digital asset management and investment advisory services from Bermuda.

He also said that Kimber Digital Assets Bermuda ISAC Ltd., also known as Plume, received a Class M Digital Asset Business license and is positioning Bermuda at the forefront of regulated tokenized real-world assets.

Burt said that Plume is the largest Real World Asset platform in the global market, combining the transparency and accessibility of decentralized finance (DeFi) with prudential oversight from a globally respected financial regulator.

He said that these announcements matter because they reflect the continued growth of Bermuda’s digital finance sector and the confidence that leading firms and institutions have in our jurisdiction.

“Serious companies are choosing Bermuda, global financial institutions are partnering here, new products are being launched from our jurisdiction, and new licenses continue to be granted under Bermuda’s regulatory framework. Taken together, these developments reinforce Bermuda’s position as a trusted, well-regulated, and internationally respected center for digital finance and innovation.”

He told legislators that while the international component of the Forum was important, one of the most encouraging aspects of this year’s event was the increased participation of Bermudians.

“The community activation brought together more than 500 people to learn about digital finance, set up digital wallets, and experience digital payments in a real-world marketplace,” he said, adding that to encourage participation, the Government sponsored 600 free tickets, allowing Bermudians to attend educational workshops, complete wallet onboarding, and receive up to US$280 in digital assets.

“While some of this may sound technical, the point is simple. Bermudians were not merely hearing about digital finance; they were using it. They learned how digital wallets work, how digital assets can be received and stored, how payments can be made, and how digital assets can be saved and invested.

“Thirty vendors were trained through the Bermuda Economic Development Corporation to accept digital payments. Those businesses successfully accepted payments during the event, and more than US$20,000 was spent with local vendors during the activation, and the feedback was overwhelmingly positive.”

Burt said that the experience highlights an important question: if Bermudian businesses can accept digital payments, if Bermudians can use digital assets to purchase goods and services, and if regulated financial institutions can operate in this space, then when will the Government create legislative certainty for its own use of digital assets?

He said the answer is that Cabinet has approved policy proposals to advance Bermuda’s digital finance legislative framework.

Burt said that these proposals will modernize the FinTech Development Fund, update the Public Treasury Administration and Payments Act, and amend the Public Funds Act to ensure that digital assets can be accepted and managed in accordance with established public finance controls.

He said the FinTech Development Fund already exists in law, having been established in 2018, and that the legislation will be updated so that it can support Bermuda’s on-chain economy initiative and provide a mechanism through which contributions can be received and deployed to support education, entrepreneurship, and responsible digital finance development in Bermuda.

Burt said that the Fund will support local entrepreneurs, training programs, public awareness initiatives, and projects that help Bermudians participate in this growing sector. It will operate with appropriate governance, reporting requirements, and oversight.

“Importantly, at least 50 percent of monies disbursed from the Fund will be reserved for projects involving companies with majority Bermudian ownership,” Burt said, noting that the success of Bermuda’s digital finance strategy cannot be measured solely by the number of international companies we attract.

“It must also be measured by the number of Bermudians who can participate, build businesses, develop new products and services, and create ownership opportunities within this sector. As Bermuda advances its global leadership in digital finance, Bermudians must have meaningful opportunities to share in the value that this industry creates.

“We must also recognize that while Bermuda has made significant progress, there is still more work to do. Some Bermudians who have sought to build businesses in this space have encountered challenges. While Bermuda’s regulatory framework has earned international respect and credibility, we must continue to modernize by creating clearer pathways for local participation while ensuring that Bermudians who are prepared to innovate and invest have the support they need to succeed.”

Burt said that Cabinet has also approved updates to the Public Treasury Administration and Payments Act and the Public Funds Act.

He said these amendments will clarify the Government’s authority to accept stablecoins and other approved digital payments for Government services, fees, and obligations, while also modernizing the framework governing the investment of public funds so that approved financial instruments may be held and managed in digital form where appropriate.

“They will confirm the Accountant General’s role in establishing practical processes for receiving, managing, reconciling, and auditing those payments and assets,” he said, adding that “financial Instructions will likewise be updated where necessary to ensure that digital payments and digital financial instruments are subject to the same safeguards, accountability, and oversight that already apply to existing forms of payment and investment”.

Burt defended the Government’s investment in digital assets, saying many traditional financial instruments are increasingly available in digital form.

“Treasury bills, money market instruments, and regulated fund products can now be issued, recorded, held, or settled digitally, while remaining subject to the same regulatory, governance, and investment standards that apply today.

“The same approach that helped make Bermuda a global leader in insurance and reinsurance is now being applied to digital finance. Today, the results are clear. Sixty-five international companies have chosen Bermuda, global financial institutions are partnering with Bermuda, new financial products are being launched from Bermuda, and Bermudians are participating.

“At the same time, the government is putting in place the legal and operational framework necessary to ensure that the benefits of this growth are shared more broadly throughout our economy, creating opportunities for Bermudians to participate, build businesses, develop new skills, and benefit from the success of this emerging sector,” Burt told legislators.