Bermuda Partners with Circle and Coinbase to Create a Fully On-Chain National Economy
In a groundbreaking move, the government of Bermuda has joined forces with Circle and Coinbase to launch a nationwide transition to blockchain-based finance, aiming to create a fully on-chain economy. This initiative is designed to provide the digital infrastructure needed to support the island nation’s transition to a more efficient and cost-effective financial system.
The partnership was announced during the World Economic Forum’s annual meeting in Davos, Switzerland, and focuses on equipping government agencies, local banks, insurers, small and medium-sized businesses, and consumers with the necessary tools to navigate the new financial landscape. As part of the initiative, both companies plan to support digital finance education and introduce residents and institutions to new payment systems using blockchain rails.
Key Benefits of the Initiative
The initiative is expected to bring numerous benefits to Bermuda’s economy, including reducing dependence on traditional intermediaries, improving access to global capital, and maintaining greater economic value circulating within the island. Using alternative payment systems like Circle’s USDC would enable “quick, low-cost dollar payments,” according to the announcement. Additionally, the transition to an on-chain economy is expected to create new opportunities, reduce costs, and ensure that Bermuda benefits from the future of finance.
Government agencies are expected to begin piloting stablecoin-based payments, while financial institutions will integrate tokenization tools and residents will participate in nationwide digital literacy programs. Although a precise timeline for expanding these pilots to full implementation was not provided, some local businesses have already started accepting digital payments following a USDC airdrop event last year.
Bermuda’s Pro-Crypto Approach
Bermuda has been at the forefront of cryptocurrency adoption since 2018, when it introduced the Digital Asset Business Act. This regulatory push has attracted over 40 licensed virtual asset service providers to the island, including Circle, which received a full Class F DABA license in July 2019. Coinbase also secured its Class F license in April 2023 to establish an international hub.
The partnership between Bermuda, Circle, and Coinbase is a significant step towards creating a fully on-chain national economy. As reported by Crypto.News, this initiative has the potential to transform the way financial transactions are conducted in Bermuda, making it a more attractive destination for businesses and investors alike.
For more information on this groundbreaking initiative, please visit https://crypto.news/bermuda-taps-circle-and-coinbase-to-build-fully-onchain-national-economy/
