- Bermuda has set foundation for becoming digital tech hub
- Headquarters must be on island to run digital asset business from Bermuda
- 66 Companies incorporated since launch of comprehensive regulatory framework
Matt Bird (Show Host, Traders Network Show): 00:00
Welcome back to the Traders Network Show broadcasting worldwide on Equities.com. I’m your host Matt Bird. We’re back with Denis Pitcher talking FinTech in Bermuda. So we left off talking about the economic development structure. What’s going on, you guys creating some new framework. Now, what is the trickle down on the actual development as far as jobs, corporations, you know, enlighten us a little bit.
Denis Pitcher (FinTech Advisor, Bermuda): 00:25
So, since we launched our, our comprehensive regulatory framework, we’ve had 66 companies incorporate. We’ve had a lot of interest. It is a good number. I mean, we’re 65,000 people, so we’re a very small Island, 21 square miles. So that’s a substantial number. And we’re starting to have those jobs come in now as the companies are going through the process of applying for there.
Matt Bird (Show Host, Traders Network Show): 00:47
Are you finding that you finding anybody migrating to Bermuda right now? Companies and human intellectual property migrating and we came to the country.
Denis Pitcher (FinTech Advisor, Bermuda): 00:55
Absolutely. So one of the requirements of being based in Bermuda is you end up needing to set your headquarters there. If you’re going to run a digital asset business, wow. If you’re going to do digital asset issuance, you don’t. But if you want to run your business from Bermuda, especially with the new EU substance rules, you need to have your headquarters and your mind and management on island. So, there is actually part of our act, a specific requirement for representatives on that.
Matt Bird (Show Host, Traders Network Show): 01:20
So, can you get into some details about the advantages for digital asset-based companies to be in Bermuda?
Denis Pitcher (FinTech Advisor, Bermuda): 01:26
Absolutely. We are really set up to be a global intermediary of capital markets and finance, right? So it’s really about how does, how do funds flow between countries around the world, especially the emerging markets, developed markets. And how do you do that in a, in a way that can really be beneficial for the company. So that’s, that’s been something that’s been accessible to the big organizations or we need to make that more accessible for the average business.
Matt Bird (Show Host, Traders Network Show): 01:44
What are you expecting as far as, I mean, this is where the beginning of 2019 the next two years as far as economic growth, what do you mean benchmarks that we can gauge the success of this stuff?
Denis Pitcher (FinTech Advisor, Bermuda): 02:03
I don’t think you’re going to get any predictions out of me, but we are very enthusiastic. We’re really trying to drive this space forward. The big component that we’re, we’re very close to solving is the banking issue. We’re actively working hard on that because there are a lot of companies that are just waiting for that solution before, they really start ramping up a lot of potential in the industry.
Matt Bird (Show Host, Traders Network Show): 02:21
While you’re also way ahead on regulation side as far as I can see, I mean countries are, it’s just starting to get their head around how to manage these digital assets, how to manage the economic growth of a decentralized currency, if you will, and how to incorporate them into, you know, the centralized currencies in the centralized governments.
Matt Bird (Show Host, Traders Network Show): 02:37
And I think the, what we’re seeing here in Davos, I, this is your first time here, but we’re seeing the consolidation of a lot of this stuff that is kind of much needed a lot of front end use case ideas that really didn’t have the enterprise level integration capability. And we’re going to see that those front end ideas consolidate with these backend engines. And I got to hand it to you guys over, you know, there’s been very little talk coming out of Bermuda other than some weather issues or whatever it may be, but now you’ve become a digital tech hub and you’re, you’re, you’re almost on every, every talk of the conversation here, right here in Davos.
Denis Pitcher (FinTech Advisor, Bermuda): 03:26
So, we are a leading offshore jurisdiction for reinsurance. So that sets the foundation and the precedent. And I think what we’re really seeing in this industry is the traditional finance people. I worked building trading systems for a number of years. People such as myself who are moving into this industry and you’re seeing the real builders who are recognizing the opportunities in the space as you get away from the hype cycle and people being overzealous in what was possible in a short span of time. And starting to look at the longer term time horizon and say, what’s really possible? How can we unlock future capital markets, the global capital markets for people around the world?
Matt Bird (Show Host, Traders Network Show): 03:51
Well, you know what? I love it. And listen, I love to have you back on the show sometime, so, but we have cuts in the commercial break. Everybody’s is Denis pitcher, chief advisor to the premier of Bermuda. We’ll be right back after these commercial messages.