The Government of Bermuda has signed a memorandum of understanding (MOU) with the Shyft network which offers blockchain-based ID solutions for Know-Your-Customer (KYC) and anti-money laundering (AML) compliant data transfers.
This development was reported by Shyft in a blog post.
The MoU indicated that the Shyft network would spend up to $10 million for blockchain technology education and economic development. Premier and Minister of Finance of Bermuda David Burt penned his name on the MOU, stating that the collaboration with Shyft would endorse high standards of technology and regulations.
Burt said that Bermuda “is able to accelerate economic growth, create jobs and attract global interest.”
“The Government of Bermuda has decided to lead the way and build interoperability into the government legislation, in essence, approach regulatory frameworks with exportability in mind… We’re leading the world in digital assets regulation, there’s no other country that provides comparable certainty and [a] progressive regulatory environment.”
The stipulations of the MoU state that the blockchain network would partner with the government in working on and improving “a robust legal and regulatory framework.” Shyft would also train Bermudians in blockchain technology and development through the country’s Department of Workforce Development.
While MoUs are useful tools for displaying intent and establishing bilateral relationships between governments and businesses, they are not binding. One benefit of MoUs for some governments in that, since they do not carry legally enforceable conditions, they may be issued and utilized without getting approval from the legislative branch.
In April, the Premier of Bermuda also signed an MoU with Binance, the world’s second largest cryptocurrency exchange by market capitalization, to receive funding for educational programs related to fintech and blockchain startups.