A round table brought together business and government to discuss the future of fintech on the island.

Among the topics on the agenda were a wallet with Bermuda dollar-denominated stablecoins; more merchant use of digital assets and the passporting of digital asset companies from reputable jurisdictions, said the Government.

“The big thing is, what does it all mean for the average Bermudian?” said Sean Stapley, a partner at Penrose Partners, which advises the Economic Development Department and helped facilitate the discussion on June 27.

The talk came as the crypto world struggles to find the next step for blockchain and related technologies following the collapse of major crypto players but before practical, everyday uses have been developed and widely implemented for crypto.

It also came as Bermuda’s initial digital asset rush loses some steam. The dramatic failure of FTX in the Bahamas and moves by Binance and Coinbase to make peace with US regulators and abandon or rethink moves offshore have shifted the momentum.

The focus has gone from big-hit initial coin offerings and major trading platforms to products and services that can demonstrate the usefulness of technologies and get them incorporated into the traditional economy, so crypto is used to pay taxis, buy groceries and transfer money.

No timelines or precise goals were set out during the round table. It was not about deliverables, but about discussing ideas that are possible, workable and understandable.

“The industry has evolved from the ICO era,” Mr Stapley said. “We want to see adoption. It should be so easy, everyone can use it.”

Open banking, in which financial institutions allow customers to connect with them and their competitors using a common standard, is high on the list, but that would be led by the banks themselves and implemented at their pace and for their benefit.

The stablecoin is particularly attractive and could provide a basis for a wide range of related technologies. A running joke in the crypto industry is that the Bermuda dollar was the first stablecoin, as it was pegged to the dollar.

One of the attractions of Bermuda is its small size and responsive regulators, making it an ideal test bed for fintech.

“Bermuda is an excellent place to test technologies,” Mr Stapley said.

Bermuda’s Digital Asset Business Act was passed in 2018. According to Bermuda Monetary Authority data, 21 companies are registered as digital asset businesses.

Fintech proponents said that the island, with an established digital asset law and the BMA, was a good place to establish a crypto or blockchain-based business. There is clarity not available in most other jurisdictions and a stamp of approval from a well-regarded regulator.

“Prove yourself in Bermuda because it has the highest standards,” Mr Stapley said. “Bermuda is open for business, but it’s not a free pass.“

Binance signed a memorandum of understanding with the Bermuda Government in 2018, and Coinbased received a digital asset business licence early this year. Bittrex and BlockFi are also licence holders. Neither Binance nor Coinbase have made big moves in Bermuda, while Bittrex and BlockFi have declared bankruptcy in the US.

Another round table is scheduled to coincide with the Bermuda Tech Summit, which runs on October 9 and 10.