Bermuda’s economical revamp is moving on-chain & Stellar Network (XLM) is going to be the host of this venture. Bermuda established the Digital Asset Business Act back in 2018, setting the example as one of the first countries across the globe to have a comprehensive crypto regime.
Currently, the local Bermuda merchants are paying from 3% to 5% in card fees, while this figure extends to 10% in some specific jurisdictions. The new, blockchain-based direction revolves around keeping more of those fees inside the island, while the people of Bermuda receive multiple benefits.
Bermuda Turns To Stellar For Cost-Efficient Economy
From now on, they can make use of Stellar Network-based crypto currency wallets in everyday activities, including paying local merchants, receiving monthly wages, settling government fees & sending money between each other.
Stellar (XLM) provides one of the largest cash-on & off-ramp networks around the globe, empowering Bermudians to easily access & manage finances.
“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”, – said Bermuda’s Prime Minister The Honorable E. David Burt on the matter.
He went on to say that Stellar Network’s capacity is perfectly suitable for this digital finance campaign, praising the Stellar Development Foundation (SDF) for supporting public sector initiatives, while also hinting at United States Dollar-pegged stablecoins as a solution for lesser fees & ease of access.
Stellar Lumens Rises 7%, Then Faces Pullback To $0.16
Stellar’s native crypto XLM sparked up a 7% rally amidst the news, but backtracked from the $0.17 weekly high back to exactly $0.16 as of press time. Right now, XLM’s price is clinging towards a downward resistance trend-line at approximately $0.158, now below all-three main moving averages (EMAs).
With crypto whale interest in Stellar Lumens (XLM) still vague, the latest rally might be a bull trap, as the high XLM price correlation with Bitcoin (BTC) suggests. However, Stellar’s price found support at the lowest-tier Bollinger Band (BOLL), depicted in green in the chart below.
If that demand area holds, XLM’s bulls might hunt for the red-label Bollinger Band breakout at $0.172, but Wednesday’s sideways market treatment doesn’t promise an easy fight. To add, more traders have been shorting Stellar Lumen’s (XLM) price on Futures markets over the past 24 hours, while bulls took in a huge deficit on excessively-leveraged positions.
According to the real-time CoinGlass data, believers in XLM’s upward price momentum have incurred a whopping $348.35K deficit out of a $351.79K total. This has left XLM’s bulls to pay for the short-seller positions, flipping the Open Interest (OI) weighted funding rate negative for hours before the ongoing Stellar Lumens price stabilization kicked in.
Check out DailyCoin’s popular crypto news today:
Bitcoin Stays Resilient as US Inflation Accelerates to 3.8%
Cardano Edges Out Solana By Decentralization: Flip Next?
People Also Ask:
The Government of Bermuda has officially chosen the Stellar network to power its ambition of becoming the world’s first fully on-chain national economy. They are moving core payment systems and financial services onto Stellar.
Bermuda specifically wanted extremely fast and ultra-low-cost transactions. Stellar’s ability to settle payments in 3-5 seconds for fractions of a cent made it the clear winner for their vision.
Citizens will soon be able to receive salaries directly in digital wallets, pay merchants instantly, settle government fees on-chain, and use stablecoins for everyday transactions. The government is already piloting on-chain public services.
This is one of the first times a real sovereign government is integrating blockchain into its core financial infrastructure at a national level. It could serve as a working model for other small countries looking to modernize.
DailyCoin’s Vibe Check: Which way are you leaning towards after reading this article?