The Government plans to introduce legislation allowing Bermuda to accept stablecoin payments and manage certain public financial assets in digital form, David Burt told the House of Assembly today, as he outlined the next phase of the island's digital finance strategy following this month's Bermuda Digital Finance Forum.

The Premier and Minister of Finance said Cabinet had approved policy proposals to modernise the island’s digital finance framework and support what he described as Bermuda’s growing “on-chain economy”.

The proposed changes would update the Public Treasury Administration and Payments Act and the Public Funds Act to clarify the Government’s authority to accept stablecoins and other approved digital payments for government services, fees and obligations. They would also establish rules for holding and managing approved financial instruments in digital form.

Mr Burt said the measures would apply public finance controls that already exist to emerging forms of money and finance rather than create brand-new standards.

The announcement is the latest stage in Bermuda’s effort to establish itself as a centre for digital assets and financial technology.

Mr Burt drew parallels between the development of Bermuda’s digital finance sector and the island’s rise as a global re/insurance market.

“The same approach that helped make Bermuda a global leader in insurance and reinsurance is now being applied to digital finance,” he told MPs.

Mr Burt added: “I am mindful that some may choose to distort what these changes mean, particularly when they hear references to Government investing in digital assets; the reality is much simpler.

“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 forum, held earlier this month, attracted more than 1,000 registered participants across its institutional conference and community programming, including 524 attendees at the main conference. According to the Government, 227 attendees were local participants and 297 travelled from overseas.

Several industry announcements were made during the event, including the Bermuda Monetary Authority’s approval of Bitcoin Suisse International under both the Digital Asset Business Act and Investment Business Act, and the granting of a Class M Digital Asset Business licence to Kimber Digital Assets Bermuda ISAC Ltd, also known as Plume.

The Stellar Development Foundation has announced that Bermuda will begin moving its financial-services activity on-chain onto the Stellar network, described as “the only blockchain purpose-built for regulated financial services”.

The Premier also mentioned a partnership between Payward, Kraken’s parent company, and Franklin Templeton aimed at expanding tokenised financial products for institutional investors.

The Government said local participation was a major focus of this year’s forum. More than 500 people attended a community activation event at Pier 6, where participants were able to set up digital wallets, learn about digital payments and receive digital assets through educational programmes.

Mr Burt said more than $62,000 in digital assets were distributed during the event and that over $20,000 in USDC stablecoin payments were spent with local vendors. Thirty businesses were trained through the Bermuda Economic Development Corporation to accept digital payments.

The Government also plans to update the Fintech Development Fund, which was created in 2018, to support entrepreneurship, education and digital finance initiatives. Mr Burt said at least 50 per cent of funds disbursed would be reserved for projects involving majority Bermudian-owned companies.

Mr Burt said Bermuda now hosts 65 international digital finance companies and argued that the sector’s long-term success would depend on attracting overseas firms and on creating opportunities for Bermudians to participate, build businesses and develop new skills.