The government of Bermuda announced plans to create the "world's first fully on-chain economy." The initiative's technical partners are Circle and Coinbase.
The collaboration was announced at the annual meeting of the World Economic Forum.
These crypto companies will provide the infrastructure for the government, banks, insurers, and private businesses to utilize digital assets. 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 expensive bank transfers. Traditional payment gateways are often unprofitable for island jurisdictions, reducing local entrepreneurs' profits. The use of the stablecoin USDC will enable fast and inexpensive transactions.
The implementation plan includes several phases:
- Government agencies will begin a pilot program accepting payments in stablecoins.
- Financial institutions will implement tokenization tools.
- 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, partners tested the system by distributing 100 USDC to participants at a financial forum for purchases from local vendors. The program's scaling is planned for May 2026.
Prime Minister David Burt noted that the partnership will reduce citizens' costs and ensure responsible innovation adoption. Coinbase added that the initiative will demonstrate the effectiveness of clear regulatory frameworks in collaboration with business and government.
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 U.S. crypto market.