- Bermuda plans to become the world’s first fully onchain national economy.
- Coinbase and Circle will support the initiative by providing tools and financial expertise.
- The plan builds on Bermuda’s early crypto regulation framework introduced in 2018.
The government of Bermuda said it is working on plans to shift major parts of its national economy onto blockchain-based systems, aiming to become the world’s first fully onchain national economy.
The initiative is being developed with support from Coinbase and Circle, according to an announcement made during the World Economic Forum annual meeting.
What an Onchain Economy Means
An onchain economy uses blockchain technology and digital assets for everyday financial activity, such as payments and settlements. Bermudian officials said the model could help reduce costs for businesses and consumers by cutting reliance on traditional banking systems, which are often expensive and slow for small island economies.
Dollar-backed stablecoins, including USDC, are expected to play an important role by enabling faster, dollar-denominated transactions while meeting compliance requirements.
“Coinbase has long believed that open financial systems can drive economic freedom,” said Coinbase CEO Brian Armstrong.
Built on Early Digital Asset Rules
Bermuda has been an early mover in crypto regulation. In 2018, it introduced the Digital Asset Business Act, one of the first comprehensive legal frameworks for digital assets. Officials said the current plan builds on that foundation and reflects years of cooperation between regulators, government agencies, and private firms.
Local businesses have already begun experimenting with onchain payments, and authorities said wider adoption could help keep more economic activity within the local economy.
Next Steps for the Economy
Government departments are expected to begin pilot programmes using blockchain-based payments, while financial institutions test tokenisation tools. The government also plans to expand digital finance education initiatives for residents and small businesses.
More details are expected to be discussed at upcoming digital finance events in Bermuda later this year.
Coinbase Launches Custom Stablecoins for Businesses
On the same day, Coinbase announced the rollout of a new service that allows businesses to issue their own custom stablecoins. The tokens are designed to be fully backed on a one-to-one basis by U.S. dollar-linked stablecoin collateral held with the exchange.
The company said the product is designed to help businesses use digital currencies for payments, rewards, and settlements, while enabling interoperability across multiple blockchains and access to Coinbase’s global distribution network.
Related: NYSE Moves Toward 24/7 Markets With Tokenized Stocks on Blockchain
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Source: https://coinedition.com/bermuda-plans-to-move-national-economy-onchain-with-support-from-coinbase-and-circle/
