Bermuda plans to launch its proposed crypto friendly bank in the country next week. This was revealed by Bermuda’s Premier, David Burt, in an interview with BBC’s journalist, Priya Patel at the Consensys Lounge on the 24th of January. This step could lead to the influx of crypto startups into the country.
Crypto Friendly Bank In Bermuda
At an event at the World Economic Summit in Davos, Switzerland, the Premier of Bermuda, David Burt announced that the country would be introducing a crypto friendly bank into the country soon.
While talking about focusing on quality over quantity in an interview with BBC journalist Priya Patel, David mentioned that the main focus of Bermuda is looking into the creation of cryptocurrency and blockchain related firms. He further said that he is proud to say, next week an announcement will be made on setting up of a bank in the country that will start accepting crypto and blockchain companies.
The announcement could serve as a booster for the influx of crypto startups into the country as the service offers more convenience to crypto firms operation.
The Need For Crypto Friendly Banks
Cryptocurrency has seen extensive growth over the past ten years that it was created. Though some thought it is the natural successor to fiat currency as well as the future of the financial world, there is still a need for firms associated with it to operate with the existing financial system one way or the other.
In contrast to the need for working together, the traditional financial system is wary of the crypto industry, because of its volatility and believe that it is an over-hyped project. Thus they are mostly unwilling to work with crypto startups.
The crypto industry had seen wide growth in Malta in recent years. However, the growth has been hampered by the unwillingness of the banking sector to work with crypto startups. This has led to many crypto firms migrating there because of similar conditions in their former abode to plan to leave the country for a more conducive place.
The recent development in Malta and the proposed plan by Bermuda could see it yield some dividend from the event through the departure of crypto firms from Malta to Bermuda.
Creating a conducive environment for crypto firms through appropriate regulations and availing them the services of the good and friendly banking system for their services is essential for their growth. Switzerland and U.S. Marshall Islands are making efforts to bring this to fruition.