Bermuda is Testing Out New Approaches for Financial Aid
Kalin Ned — September 22, 2020 — Social Good
References: stablehouse.io & nfcw
The Bermudan government is launching a pilot to test the effectiveness and viability of digital stimulus tokens. This initiative comes as officials are trying to address the financial distress that the COVID-19 pandemic brought onto businesses and individuals. For this project, the government collaborated with Stablehouse—a local payment and foreign exchange platform.
To be used on food and other essential items, the stimulus tokens are sent to the digital wallet of one's phone. This makes for seamless and efficient distribution. Individuals can spend this at participating vendors and have to scan a QR code at the point-of-purchase in order to do so.
When vendors want to redeem the stimulus tokens received, they can press a button to transfer them to a Stablehouse government account. Thereafter, a cash wire transfer is sent to the vendor.
Image Credit: NFCW
To be used on food and other essential items, the stimulus tokens are sent to the digital wallet of one's phone. This makes for seamless and efficient distribution. Individuals can spend this at participating vendors and have to scan a QR code at the point-of-purchase in order to do so.
When vendors want to redeem the stimulus tokens received, they can press a button to transfer them to a Stablehouse government account. Thereafter, a cash wire transfer is sent to the vendor.
Image Credit: NFCW
Trend Themes
1. Digital Stimulus Tokens - The use of digital stimulus tokens for financial aid can revolutionize the way governments distribute funds during a crisis.
2. Mobile Wallets for Stimulus Distribution - The use of mobile wallets for stimulus distribution can lead to a more efficient and transparent process for both governments and individuals.
3. Collaboration Between Governments and Fintech Companies - Collaboration between governments and fintech companies can lead to innovative solutions for financial aid distribution.
Industry Implications
1. Fintech - Fintech companies can develop new technologies for digital stimulus token distribution and collaborate with governments to provide financial aid in an innovative way.
2. Government - Governments can explore the use of digital stimulus tokens and mobile wallets to distribute financial aid more efficiently and transparently during a crisis.
3. Retail - Retailers can participate in the use of digital stimulus tokens and collaborate with governments to provide essential items to individuals in need during a crisis.
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