Bermuda has taken a bold step toward reshaping how a country runs its financial system. Speaking at the World Economic Forum Annual Meeting in Davos, the Government of Bermuda announced its plans to become the world’s first fully onchain national economy. This initiative has garnered significant support from Circle and Coinbase, two prominent firms specializing in digital asset infrastructure.
The overarching aim of Bermuda's plan is to reduce payment friction, strengthen local commerce, and expand access to global financial tools. As this ambitious plan progresses, it holds the potential to establish a groundbreaking model for other small economies that encounter similar limitations imposed by traditional banking systems.
Bermuda Targets Lower-Cost Payments for Daily Business
Bermuda's economic landscape is significantly shaped by thousands of small and medium-sized businesses. However, many of these enterprises continue to grapple with the high costs associated with traditional payment networks. These elevated costs often arise because major payment processors categorize Bermuda alongside other island jurisdictions, leading to higher fees for merchants and a reduction in profit on each transaction.
Bermuda posits that stablecoins can fundamentally alter this dynamic. By leveraging USDC, merchants can accept dollar-denominated payments swiftly and at a reduced cost. Furthermore, the island has already witnessed successful real-world applications of onchain payments, demonstrating their viability. Officials indicate that these existing systems are instrumental in enabling residents to conduct local transactions while simultaneously adhering to contemporary compliance requirements.
Circle and Coinbase Expand the Partnership
Circle and Coinbase have committed to providing essential tools and comprehensive support across the entire Bermudian economy. Their collaborative efforts will extend to government agencies, financial institutions, insurance providers, merchants, and consumers. Beyond the provision of technological infrastructure, the companies also intend to implement nationwide educational initiatives and technical onboarding programs.
Brian Armstrong, the CEO of Coinbase, characterized this strategic push as a pivotal advancement toward achieving open financial access. He stated, "Coinbase has long believed that open financial systems can drive economic freedom." He further emphasized, "We are excited to support Bermuda’s transition toward an onchain economy that empowers local businesses, consumers, and institutions."
Jeremy Allaire, the CEO of Circle, also highlighted Bermuda's proactive role in establishing responsible regulatory frameworks. He further commented that the island continues to demonstrate the practical feasibility of national-scale blockchain adoption.
Regulation and Real-World Adoption Drive the Strategy
Bermuda established its reputation in the digital asset space early on. In 2018, the jurisdiction introduced the Digital Asset Business Act, which represented one of the earliest comprehensive legal frameworks for digital assets. Both Circle and Coinbase were among the first entities to secure licenses under this pioneering regime. Consequently, Bermuda now embarks on this new phase with a wealth of experience and a robust regulatory structure already in place.
This ongoing partnership also builds upon previous adoption campaigns. During the Bermuda Digital Finance Forum 2025, the collaborating entities conducted a USDC airdrop. Attendees were provided with 100 USDC, which they could then spend with participating merchants. Notably, this event spurred a significant increase in the number of businesses that began accepting digital payments.
Bermuda is planning more in-depth engagement at the Bermuda Digital Finance Forum 2026, scheduled to take place from May 11–14. Over time, the implementation of pilot programs focusing on stablecoin payments and national financial literacy initiatives is expected to foster a more competitive economic environment for the island.