Government will develop business plan with industry to launch world’s first state sponsored digital bank

The Bermuda government has vowed to work with industry experts to build out a detailed business plan before advancing its planned Digital Bank Bill that will allow it to create the world’s first state sponsored digital bank in Bermuda.

David Burt, Bermuda’s premier, expressed concern that “existing banks have to date been unable to service many companies in emerging industries,” and believes a new digital bank could better support such businesses and increase jobs in Bermuda.

It will work with the industry to develop a business plan that will create intellectual property for the digital bank and review current regulatory standards to identify potential areas that may require changes. It will also identify corresponding banking partners and potential risks and risk-mitigation strategies for the development of the digital bank, and advise on the design of its core technology.

“We believe the size of our relevant financial sectors and high regulatory standards make us an attractive jurisdiction for this initiative,” said Burt. “We anticipate that the development of the Bermuda Digital Bank will enhance Bermuda’s attractiveness to new types of banks that wish to enter the Bermuda Market and will support industries that wish to set up in Bermuda.”