Bermuda will migrate key payment and financial services to Stellar, advancing a fully on-chain national economy

The Stellar Development Foundation and the Government of Bermuda jointly announced that Bermuda will migrate key payment and financial services to the Stellar network, officially advancing the construction of a "fully on-chain national economy."

The plan relies on Bermuda's 2018 Digital Asset Business Act regulatory framework, aiming to significantly reduce local merchants' payment processing costs from 3% - 5% or even higher.

According to the plan, Bermuda residents will be able to receive salaries, merchant payments, pay government fees, and hold digital assets through digital wallets on the Stellar network in the future.

The government will pilot stablecoin payments, and financial institutions will have access to tokenized tools, with related assets also being used for government payment scenarios such as social service disbursements.