Bermuda Partners with Coinbase and Circle to Build ‘Fully Onchain’ National Economy
The Caribbean island nation of Bermuda announced Monday that it will partner with cryptocurrency exchange Coinbase and stablecoin issuer Circle to develop a blockchain-based economy. The announcement came during the World Economic Forum Annual Meeting in Davos, Switzerland, where Bermuda Premier David Burt outlined plans to leverage digital asset infrastructure for economic development.
Under the partnership, Bermuda will use the USDC stablecoin and Coinbase’s Base blockchain infrastructure to create what officials describe as a fully onchain economic model. The initiative marks a significant step in Bermuda’s ongoing efforts to position itself as a crypto-friendly jurisdiction.
“This initiative is about creating opportunity, lowering costs, and ensuring Bermudians benefit from the future of finance,” Burt said in the announcement. The partnership builds on previous regulatory work undertaken by Bermuda’s government to attract cryptocurrency companies and blockchain innovation to the island.
The rollout will begin with a pilot program that focuses on three key areas. Government agencies will implement stablecoin-based payment systems, financial institutions will integrate tokenization tools into their operations, and residents will participate in nationwide digital literacy programs designed to increase blockchain and crypto awareness.
Bermuda has been establishing itself as a progressive jurisdiction for cryptocurrency development. In 2018, the island nation introduced a comprehensive regulatory framework specifically designed to attract digital asset businesses and foster blockchain innovation in the region.
The partnership with Coinbase and Circle represents a notable vote of confidence in Bermuda’s regulatory environment and infrastructure. Both companies have been actively involved in promoting blockchain adoption and stablecoin usage globally, with Circle’s USDC serving as one of the most widely used dollar-backed stablecoins in the cryptocurrency ecosystem.
The pilot program will test whether a blockchain-based payment system can effectively support government operations and financial services at a national level. If successful, the model could be expanded to create deeper integration of digital assets into Bermuda’s broader economic infrastructure.
Officials emphasized that the initiative aims to reduce transaction costs while improving financial access for Bermuda residents. By utilizing stablecoins and onchain infrastructure, the government believes it can streamline payments and lower barriers to financial participation.
The announcement represents one of the most ambitious government-backed blockchain initiatives undertaken by a sovereign nation to date. The partnership demonstrates how traditional government institutions and cryptocurrency companies can collaborate on large-scale digital transformation projects.
Further details about the pilot program’s timeline and specific implementation requirements are expected as the partnership develops. This is a developing story, and additional information will be provided as it becomes available.
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