Bermuda’s economic overhaul is moving on-chain, and Stellar Network (XLM) will be the host of this venture. Bermuda set an example by enacting the Digital Asset Business Act in 2018, making it one of the first countries in the world to have a comprehensive encryption regime.
Currently, merchants in Bermuda pay between 3% and 5% in card fees, with this figure rising to 10% in some specific jurisdictions. The new blockchain-based direction is to keep more fees within the island, while Bermudians receive a variety of benefits.
Bermuda has an outstanding track record of being a cost-effective economy.
From now on, they can use Stellar Network-based cryptocurrency wallets for everyday activities such as paying local merchants, collecting salaries, settling government fees, and sending money to each other.
Stellar (XLM) provides one of the world’s largest cash deposit and withdrawal networks, making it easy for Bermudians to access and manage their finances.
“The lack of mobile money applications and reliance on existing payment infrastructure has forced Bermudians to pay high payment processing fees and hindered opportunities for further economic growth.”, – Speaking on the matter, Bermuda Premier E. David Burt said:
He went on to say that Stellar Network’s capabilities are perfectly suited to this digital finance campaign, praising the Stellar Development Foundation (SDF) for supporting public sector initiatives, while also hinting that stablecoins pegged to the U.S. dollar are a solution for lower fees and ease of access.
Stellar Lumens rises 7% before falling to $0.16.
Stellar’s native cryptocurrency XLM sparked a 7% rally during the news, but has fallen back from a weekly high of $0.17 to exactly $0.16 as of press time. The price of XLM is currently racing towards a downward resistance trendline around $0.158, which is currently below all three major moving averages (EMAs).
With crypto whale interest in Stellar Lumens (XLM) still ambiguous, the recent rally may be a firetrap, as the high XLM price correlation with Bitcoin (BTC) suggests. However, Stellar’s price found support at the lowest level Bollinger Bands (BOLL), shown in green in the chart below.
If that demand area holds, bulls on XLM could be looking to break the red label Bollinger Band at $0.172, but Wednesday’s sideways market treatment doesn’t promise an easy fight. Moreover, in the last 24 hours, more traders have sold Stellar Lumen (
According to real-time CoinGlass data, those who believe in XLM’s upward price momentum suffered a loss of a whopping $348.35K out of a total of $351.79K. This made XLM’s bulls pay for their short positions and flipped the open interest (OI) weighted funding ratio into negative hours ahead of the ongoing Stellar Lumens price stabilization.
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The Bermuda government has officially chosen the Stellar network, furthering its ambitions to become the world’s first fully on-chain national economy. They are moving their core payment systems and financial services to Stellar.
Bermuda specifically wanted very fast, ultra-low-cost transactions. Stellar’s ability to complete payments in 3-5 seconds for less than a penny makes Stellar a clear winner for their vision.
Citizens will soon be able to receive salaries directly from their digital wallets, pay merchants instantly, pay government fees on-chain, and use stablecoins for everyday transactions. Governments are already piloting on-chain public services.
This is one of the first instances of an actual sovereign government integrating blockchain into its core financial infrastructure at a national level. This could serve as a working model for other small countries seeking to modernize.
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