The Government is taking a bold step towards positioning the island at the forefront of the future of global financial policy, by planning to be the world’s firstly fully onchain national economy.

While the plans will not affect the average transaction immediately, it could start the island moving towards faster and less expensive payments, bypassing processes and institutions.

Most payments are today done through card networks, banks and overseas payment processors in an international payment system that treats Bermuda as a risky jurisdiction, requiring additional financing.

Onchain, and blockchain networks, would speed up the flow of money, taking seconds, not days, to settle. The cost of doing business, and theoretically the cost of all goods and services, could become less expensive.

Payments will flow directly from the payer to the payee, maybe through a phone wallet instead of a card. No more waiting for transfers to clear.

Positioning Bermuda as a digital finance hub could not only make it cheaper to do business in Bermuda, but could also keep more money circulating locally.

Agreements the Government has struck with cryptocurrency and fintech companies Circle and Coinbase may help to make such a transition smoother, including when it comes to the education campaigns that will be required to get Bermudians up to speed.

Entrepreneurs, freelancers, small and medium businesses get paid faster, and without the hindrance of processing fees and credit card delays. Winners could also be retailers and hospitality, putting a brake on rising costs. Fees and other payments to and from the Government could also become digitally transmitted.