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 said it plans to become the world’s first fully onchain national economy. The initiative brings major support from Circle and Coinbase, two firms that focus on digital asset infrastructure. Bermuda aims to reduce payment friction, strengthen local commerce, and expand access to global financial tools. As the plan moves forward, it could set a model for other small economies facing similar limits from traditional banking rails. Bermuda Targets Lower-Cost Payments for Daily Business Bermuda’s economy relies on thousands of small and medium-sized businesses. However, many still face high costs from traditional payment networks. These costs often rise because major processors treat Bermuda like other island jurisdictions. Consequently, merchants pay higher fees and lose profit on every sale. Bermuda believes stablecoins can change that. With USDC, merchants can accept dollar-based payments quickly and at a lower cost. Additionally, the island already has local examples of onchain payments working in real conditions. Officials say these systems help residents transact locally while meeting modern compliance needs. Circle and Coinbase Expand the Partnership Circle and Coinbase said they will provide tools and support across the Bermudian economy. Their work will reach government agencies, banks, insurers, merchants, and consumers. Besides infrastructure, the companies also plan nationwide education and technical onboarding. Coinbase CEO Brian Armstrong described the push as a step toward open financial access. He said, “Coinbase has long believed that open financial systems can drive economic freedom.” He also added, “We are excited to support Bermuda’s transition toward an onchain economy that empowers local businesses, consumers, and institutions.” Circle CEO Jeremy Allaire also pointed to Bermuda’s role in responsible regulation. Moreover, he said the island continues to show how national-scale blockchain adoption can work. Regulation and Real-World Adoption Drive the Strategy Bermuda built its digital asset reputation early. In 2018, it introduced the Digital Asset Business Act, one of the first full frameworks. Circle and Coinbase became early license holders under that regime. Hence, Bermuda now enters this new phase with experience and regulatory structure. The partnership also builds on earlier adoption campaigns. At the Bermuda Digital Finance Forum 2025, the partners ran a USDC airdrop. Attendees received 100 USDC to spend with onboarded merchants. Significantly, more businesses began accepting digital payments after that event. Bermuda plans deeper engagement at the Bermuda Digital Finance Forum 2026, set for May 11–14. Over time, pilots in stablecoin payments and national literacy programs could support a more competitive economy.
