Bermuda plans to build a "completely on-chain national economy," supported by a compliant platform and Circle

Source: PortaldoBitcoin Original Title: Bermuda Plans a “Fully On-Chain National Economy” with the Help of Coinbase and Circle Original Link: The island nation Bermuda plans to transfer its entire economy onto the blockchain with the support of a certain compliant platform and USDC stablecoin issuer Circle.

The plan was announced on Monday (19th) during the World Economic Forum annual meeting. Bermuda will receive support from these crypto companies to provide digital asset infrastructure for the government, local banks, insurance companies, and consumers. According to the press release, the goal is to create the “world’s first fully on-chain national economy.”

Bermuda Prime Minister E. David Burt stated in a declaration: “Bermuda has always believed that responsible innovation is best achieved through collaboration between government, regulators, and industry.”

He added: “With the support of Circle and a certain compliant platform (two of the most trusted global digital financial companies), we are accelerating the realization of a national digital finance vision. This initiative aims to create opportunities, reduce costs, and ensure Bermudians benefit from the future of finance.”

According to the CIA’s 2024 estimate, the country has approximately 73,000 residents, mainly relying on tourism and construction, with an estimated real GDP of about $6.8 billion in 2024, ranking 172nd among 221 countries.

Soon, these economic indicators may operate on a crypto track, with a fully on-chain economy defined as “using digital assets as everyday financial infrastructure.”

The first step includes government agencies participating in a stablecoin payment pilot project, with financial institutions using tokenization tools. Additionally, there is a national digital literacy program, and crypto companies plan to provide digital asset education and technical integration support.

Brian Armstrong, CEO of a certain compliant platform, stated: “A certain compliant platform has always believed that open financial systems can drive economic freedom. Bermuda’s leadership demonstrates the possibilities when clear rules are combined with strong public-private cooperation. We are pleased to support Bermuda’s transition to an on-chain economy, empowering local businesses, consumers, and institutions.”

Ultimately, the migration to an on-chain economy is expected to reduce financial transaction costs, improve global financial accessibility, and bring long-term benefits to residents and businesses.

This certain compliant platform and Circle have a history with this island nation. In 2023, the platform obtained a license from the Bermuda Monetary Authority (BMA) as part of its global expansion efforts. As early as 2019, the country partnered with Circle to enable USDC payments for taxes and tested its own stablecoin in 2020.

Bermuda approved the Digital Asset Business Act in 2018, becoming one of the earliest countries to regulate cryptocurrencies.