Bermuda to Shift Payments and Financial Services onto Stellar
Premier David Burt announced Bermuda will move payments and financial services to the Stellar blockchain as part of a plan for a fully on-chain national economy.
Bermuda will move core payment and financial-services operations onto the Stellar blockchain, Premier David Burt announced Tuesday at the Bermuda Digital Finance Forum. The government described the effort as part of plans to create a fully on-chain national economy.
Officials stated the decision follows risk assessments that concluded the government can accept and invest in digital assets. They plan to place specific public-sector payment flows and other financial services on Stellar to reduce transaction costs and speed up processing for residents and businesses.
Burt highlighted high processing fees and limited mobile money options as drivers of the plan. “The lack of mobile money applications and reliance on legacy payments infrastructure has left Bermudians paying high payment processing fees and hindered additional economic growth opportunities,” he said. He added that using digital dollars on a network like Stellar can deliver public programs at the scale Bermuda requires.
Stellar is a Layer 1 blockchain built for fast, low-cost transfers. It supports cross-border payments, fiat on- and off-ramps, and stablecoin issuance for banks, fintech firms and exchanges.
Burt told the forum the work will proceed with private-sector partners. The government announced earlier this year at the World Economic Forum in Davos that it had formed partnerships with Circle and Coinbase and indicated private companies will lead implementation while the government provides support.
Bermuda’s economy, with a gross domestic product of about $9 billion in 2024, has sought to attract digital-asset firms since passing the Digital Asset Business Act in 2018. Officials stated moving services on-chain is intended to modernize payments, reduce processing costs and support new digital-dollar initiatives.
The announcement did not include a timeline or a full list of services to be migrated. Officials added that further details on pilot programs and the scope of services will be released as projects advance and additional risk assessments are completed.
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