Bermuda has announced an ambitious initiative to transform its economy into the world”s first fully onchain national system through a strategic alliance with Coinbase and Circle. This significant move, revealed at the World Economic Forum in Davos, aims to integrate USDC and Base infrastructure into the financial framework of the nation.
The plan seeks to facilitate everyday transactions, public services, and various banking functions via blockchain technology. Under this strategy, Coinbase and Circle will provide essential digital asset infrastructure and enterprise solutions to the Bermudian government, local financial institutions, insurers, and businesses, including small and medium-sized enterprises.
The initial stages of the initiative will focus on stablecoin-based payments and tokenization solutions for financial services, alongside a nationwide digital literacy program aimed at fostering safe practices around onchain finance. USDC is set to become the primary medium for dollar-denominated transactions, enabling merchants to process rapid and cost-effective digital payments while maintaining value stability linked to the U.S. dollar.
Pilot projects already in motion in Bermuda have demonstrated local businesses utilizing USDC for retail transactions and service payments, ensuring compliance with current regulatory standards. The collaboration between Coinbase, Circle, and the Bermudian government extends beyond mere technology, incorporating comprehensive digital finance education and technical onboarding initiatives to help residents and businesses navigate wallets, stablecoins, and onchain security measures.
At the Davos conference, Premier David Burt emphasized that this partnership could lead to reduced transaction costs and broader access to global financial systems, ultimately retaining more economic value within the local economy rather than allowing it to flow through expensive offshore payment systems.
Bermuda”s onchain initiative is grounded in its 2018 Digital Asset Business Act, which is recognized as one of the earliest and most comprehensive regulatory frameworks for cryptocurrency enterprises globally. Circle and Coinbase were among the initial firms to secure licenses under this legislation, contributing to a growing ecosystem of digital asset companies in the region.
Officials involved in the project view this initiative as a practical exploration of how stablecoins and tokenization can revolutionize public finance, trade, and cross-border access in a small, open economy. Should the phased rollout prove successful, Bermuda could serve as a model for other nations aiming to transition substantial portions of their economies onchain while maintaining robust regulatory oversight.
