Bermuda Plans Fully Onchain Economy with Circle, Coinbase

Bermuda's government announced plans Monday at the World Economic Forum annual meeting in Davos, Switzerland, to transform the island nation into the world's first fully onchain national economy, partnering with cryptocurrency firms Circle and Coinbase to integrate digital assets into its financial systems.

The initiative aims to embed blockchain-based technologies into everyday payments and economic activities, starting with pilots for stablecoin payments in government agencies and local businesses. Circle and Coinbase will supply the necessary digital asset infrastructure and enterprise tools to support government operations, financial institutions, merchants, and consumers. At the center of the effort is Circle's USDC stablecoin, which offers low-cost, dollar-pegged transactions as an alternative to traditional payment processors that impose high fees on Bermuda due to its classification as an island jurisdiction.

Premier E. David Burt described the partnership as a continuation of Bermuda's commitment to innovation through collaboration. "Bermuda has always believed that responsible innovation is best achieved through partnership between government, regulators, and...