Bermuda will move its entire national economy onto blockchain by partnering with Circle and Coinbase, making the island a real-world testbed for a fully "on-chain" financial system.
The announcement, made at the World Economic Forum Annual Meeting in Davos, is viewed as a significant development in integrating digital assets into a sovereign nation's infrastructure.
Bermuda's plan addresses high fees and limits from traditional payment systems. Circle's USDC will become a primary payment method for faster, cheaper, dollar-based transactions.
From Regulation to Live Testing
The partnership will involve Circle and Coinbase providing their infrastructure and tools to local banks, insurers, and businesses, with the goal of creating an on-chain financial ecosystem.
The plan builds on Bermuda's role in digital asset regulation. The country introduced its Digital Asset Business Act in 2018, and both Circle and Coinbase were among the first global firms to be licensed under the regime.
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“Bermuda has always believed that responsible innovation is best achieved through partnership between government, regulators, and industry,” said Premier E. David Burt. “With the support of Circle and Coinbase, two of the world’s most trusted digital finance companies, we are accelerating our vision to enable digital finance at the national level.”
For the global financial industry, Bermuda is viewed as a case study. The project will examine whether an on-chain economy can deliver on its stated goals of lower transaction costs, greater financial inclusion, and enhanced economic resilience at a national scale.
"Bermuda has participated in digital asset development and continues to explore blockchain innovation at a national scale,” said Jeremy Allaire, CEO of Circle. Coinbase CEO Brian Armstrong added, “Bermuda’s leadership shows what’s possible when clear rules are paired with strong public-private collaboration.”
The initiative will see government agencies pilot stablecoin-based payments, while local financial institutions begin integrating tokenization tools. Together, these steps will provide a real-world reference for how other countries might introduce blockchain-based infrastructure gradually.
