Bermuda Plans Transition to Blockchain Economy

Bermuda plans to create the world's first fully on-chain economy with Circle and Coinbase.

The government of Bermuda announced plans to establish the “world’s first fully on-chain economy.” Circle and Coinbase have been named as the technical partners for this initiative.

The collaboration was unveiled at the annual meeting of the World Economic Forum.

The crypto companies will provide the infrastructure for the use of digital assets by the government, banks, insurers, and private businesses. Additionally, the partners will launch educational programs in digital finance for the public.

The shift to “on-chain rails” aims to address the issue of costly bank transfers. Traditional payment gateways are often disadvantageous for island jurisdictions and reduce the profits of local entrepreneurs. The use of the stablecoin USDC will enable fast and inexpensive transactions.

The implementation plan includes several stages:

1. Government agencies will begin a pilot program to accept payments in “stablecoins”.
2. Financial institutions will implement tokenization tools.
3. Businesses will gain access to global finance through digital wallets.

Bermuda has been developing cryptocurrency regulations since 2018. Circle and Coinbase were among the first to receive local licenses. In 2025, the partners tested the system by distributing 100 USDC to financial forum participants for purchases from local vendors. The program’s expansion is scheduled for May 2026.

David Burt, the islands’ Premier, noted that the partnership will reduce citizens’ expenses and ensure the responsible introduction of innovations. Coinbase added that the initiative will demonstrate the effectiveness of clear regulatory rules in conjunction with business and government collaboration.

Earlier in January, Coinbase CEO Brian Armstrong denied reports that the White House was considering withdrawing support for the Clarity Act, which regulates the structure of the US crypto market.