Bermuda Govt Partners With Stablehouse to Test A Stimulus Token for COVID-19 Aid

On Tuesday, the Government of Bermuda announced that it has rolled out a pilot initiative for digital stimulus token. The program is being run in conjunction with Stablehouse, a Bermuda-based payments startup. The program is expected to offer crucial feedback on whether digital tokens can be used for buying essential goods and services in the country.

Stablehouse claims to be ‘a global virtual currency clearing house’ and facilitates the exchange of stablecoins. The startup is being advised by ex-Tether executive, Phil Potter, who will offer his expertise to the government in the provision of Bermudian Dollar Token, BMDT.

The government is seeking to collect vital information and data on whether merchants will readily accept digital tokens as a payment method. The pilot phase will also establish whether Bermudians are ready to use the tokens to buy essential goods and services.

At the moment, the government has recruited three merchants as well as 20 individuals who were given a stipend of free BMDTs that they use to test the initiative.

Speaking to Decrypt, chief fintech advisor to Bermudian prime minister, Denis Pitcher explained that the project will kick-off with a small number of participants but will gradually expand.

“Our ultimate goal is to end up with a wallet on every phone because wallets are the browser of the future when it comes to money and the future of finance.”

The partnership will see Stablehouse offer point-of-sale services to the merchants as well as provide its Green Wallet that enables clients to store coins while offline easily. The startup will also be handling issuance as well as redemption of the BMDT. It’s important to note that every token is backed by the Bermudian dollar, which is also pegged to the US dollar.

The token will run on Blockstream’s Liquid, which is a sidechain protocol that is designed to link together various exchanges.

The token stimulus initiative has been in the works since last year and is part of a comprehensive plan to introduce digital currency on the island.

Bermuda has implemented various crypto-friendly policies in the recent past. For instance, in October last year, the island allowed its residents to clear their taxes and fees using US dollar-backed stablecoins.

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Author: Joseph Kibe

Second US Stimulus Package of $1,200 on the Way as Bitcoin Bulls Gain Momentum

A second stimulus check is on the way for American citizens, according to the White House’s economic advisor, Larry Kudlow. He confirmed this position during an interview with CNN’s Jake Tapper on July 26, signaling that the Fed’s printers might soon be busy again. This news coincides with strong crypto market bulls that have since pushed Bitcoin past $10,360 as of press time.

Earlier, BEG reported that the first stimulus round might have helped Bitcoin recover from black Thursday, given that quite a large number of Americans invested in Bitcoin. Could this new stimulus round push BTC further? A lot is clearly in play, but an injection by the Fed will likely result in a BTC rally, just like other markets have started to recover.

The European Union also recently announced plans to initiate a second Euro stimulus, aiming to distribute close to 1 billion Euros. While a direct correlation has yet to be linked to Bitcoin’s price surge following the announcement last week, speculators see the move by the EU may have contributed to Bitcoin’s price movement. The leading crypto asset had been stable for quite a while, ranging between $9k and $9.3k, but this resistance has since been broken over the past week.

Bitcoin Investors Gained over 40% ROI Since April.

With most of the stimulus payment processes clearing in April, investors who got into the market at the time are now over 45% in profit.

As the March economic downturn took a heavy toll on all sectors, the price of BTC dipped to lows below $4,000, but then eventually climbed back to almost $7,000 at the beginning of April. Looking at these stats, Americans who opted to buy Bitcoin with their stimulus money can cash out with around 40% gains depending on at which point they bought into the market.

Though considered volatile, digital assets such as Bitcoin are proving to be lucrative as fundamentals make inroads to the retail space. No wonder applications like Jack Dorsey’s Cash App are fast catching up with this trend.

The platform recently moved to allows Bitcoin purchases, including an automatic feature for such executions to grow revenue through Bitcoin’s demand. It is quite noteworthy that most of Cash App’s Q1 revenue this year came from Bitcoin purchases, a trend that might replicate itself in an even bigger way should more Americans decide to spend their stimulus on Bitcoin.

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Author: Edwin Munyui

Banks Can Seize Your Stimulus Check; Bitcoin the “Unseizable” Hard Asset Fixes This

This week, more Americans will start receiving their stimulus checks of $1,200 to offset the effects of coronavirus pandemic. These funds will be wired directly to eligible recipients’ bank accounts.

However, this money might not make it into your hands as Congress hasn’t expected the CARES Act Stimulus checks from private debt collection.

According to The American Prospect, the Treasury Department has given a green light for banks to make a “business decision” and use this to their advantage, citing leaked audio.

Reportedly, last week, in a webinar with baking officials, the chief disbursing officer Ronda Kent clarified twice that “there’s nothing in the law that precludes” these payments from

“subject to collection from the bank to which the money is deposited, if the payee owes an outstanding loan or other payments to the bank.”

Stimulus checks of up to $1,200 and $2,400 in the case of married couples and $500 for each qualified child are being sent to people. Not only those with an adjusted gross income of $75,000 but with no tax liability will also get the stimulus check.

JPMorgan Chase is the only bank to confirm that the recipient will get the full benefit of the Stimulus. Banks like Wells Fargo, Citibank, US Bank, and Bank of America haven’t ruled out using these payments to pay off the outstanding debt.

“[Treasury] has the ability to say that these payments are exempt, and they’re not doing so,” said Lisa Stifler, debt collection lead at the Center for Responsible Lending.

“Under this scenario, the bank could use the $1,200 payment to offset the $1,000 in overdraft charges, even if the individual thought the account was closed.”

In response to the Fed distributing emergency funds via intermediaries the user is indebted to, Neeraj Agrawal of CoinCenter tweeted, “Money should be harder to seize.”

As Bitcoin enthusiasts and industry commentators have repeatedly called out, bitcoin is an unseizable asset. Unlike gold, bearer bonds, and cash, the world’s leading digital asset can’t be seized or confiscated.

Source: @AriDavidPaul

“When you’re worried about your assets being seized or becoming inaccessible to you, Bitcoin’s non-seizability becomes very attractive,” said Bitcoin bull and Morgan Creek Digital’s co-founder Anthony Pompliano.

At that time, he said this is what makes it important to the people of India & Hong Kong. But now it looks like, for the US citizens as well, the hard asset is a good alternative to cash.

Many people are actually planning to buy Bitcoin with their stimulus checks and have already started to.

According to analyst PlanB’s recent poll, a good 30% of 12,702 voters said yes to buying BTC from their stimulus checks.

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Author: AnTy