The government of Bermuda and Shyft network have signed Memorandum of understanding to support local blockchain projects. Under the MoU, Shyft network will be offering blockchain-ID solutions to be used for Know your customers (KYC) plus facilitating agreeable data transfers for anti-money laundering (AML).
Shyft network is expected to spend $10 million to offer economic advancement and blockchain technology instruction. While signing the MoU Bermuda Chief and Minister of Finance David Burt said that the partnership will help in advancing the standards of technology and regulations. Burts said that the partnership will allow the government to increase economic growth, create more jobs and attract investors.
On the hand, Joseph Weinberg, the Chairman of Shyft said that the company is fully committed to developing a world digital identity ecosystem which will allow all people to take part. He added that the company will leverage the new technology to so as to make positive change for the people.
The Bermuda government has been working with private investors on several blockchain initiatives which are aimed at making the country a regulated hub for digital assets and blockchain technology. The government recently signed an MoU with Binance Group and Medici Ventures.
Setting a favorable regulatory framework to facilitate development of blockchain
According to Burt, the country is joining the community of countries that have established a regulatory framework that favors the development of blockchain. He added that that the country is approaching the regulatory framework with exportability in mind. Burt says this will be the highest level of exportability that will include regulation, technology, protocol and process which the government is building in partnership with like-minded companies like Shyft who have a lot of experience in handling anti money laundering (AML) and KYC compliance.
MOUs are very useful in showing intend and interest as well as establishing bilateral relationships between businesses and governments. However, they lack legal binding and their fulfillment is purely out of understanding and goodwill. Many governments prefer MOUs because they don’t carry conditions that are legally enforceable hence they can be signed and adopted without the need for seeking legislative approval.