Bermuda is embarking on an ambitious initiative to become the world's first "fully onchain" national economy through a partnership with Coinbase and Circle. The announcement was made at the World Economic Forum in Davos, Switzerland. The collaboration aims to integrate digital assets into the island nation's financial infrastructure, impacting government operations, businesses, and consumer transactions.
The core of this initiative involves deploying Circle's USDC stablecoin and leveraging Coinbase's digital asset tools across Bermuda. The goal is to establish a system where digital assets serve as everyday financial tools. This includes enabling stablecoin payments across government agencies, promoting USDC adoption among local businesses, and supporting financial institutions in integrating tokenization and other digital finance instruments.
Bermuda's government views this move as a way to overcome the limitations and costs associated with traditional payment systems. Premier David Burt has highlighted that Bermuda's existing regulatory framework for digital assets makes it a natural fit for this innovation. The country established its regulatory framework in 2018 with the Digital Asset Business Act and was among the first to license both Circle and Coinbase.
For Bermuda, a small, highly entrepreneurial economy, traditional payment systems can be expensive and restrictive. The island's classification alongside other Caribbean jurisdictions can lead to higher fees and limited access to onshore payment processors. By transitioning to an onchain economy, Bermuda hopes to provide faster, lower-cost, and more efficient payment solutions, thereby boosting local commerce.
The partnership builds upon previous efforts to introduce digital assets to the Bermudian market. At the Bermuda Digital Finance Forum 2025, attendees received an airdrop of 100 USDC each, which could be used with participating local merchants. The 2026 Forum is slated to expand on this initiative, encouraging broader adoption of digital assets. Moreover, the initiative includes plans for nationwide digital finance education and technical onboarding programs. These programs will aim to equip residents and businesses with the knowledge and skills necessary to participate in the onchain economy. Government agencies will also pilot stablecoin-based payments, and financial institutions will explore tokenization tools.
The move towards an onchain economy has the potential to significantly impact global cryptocurrency trends. By embracing digital assets at a national level, Bermuda is positioning itself as a leader in fintech innovation. The success of this initiative could serve as a model for other countries looking to leverage blockchain technology and digital currencies to improve their financial systems. The partnership between Bermuda, Coinbase, and Circle represents a significant step towards integrating digital assets into the mainstream economy.
