Bermuda announced plans at the World Economic Forum in Davos on Monday to transform itself into the world’s first fully on-chain national economy.
Circle and Coinbase have committed to providing the digital asset infrastructure and enterprise tools needed to support the transition.
The initiative envisions integrating digital assets into the country’s everyday financial infrastructure, enabling blockchain-based systems to support payments and other core economic activities.
Circle and Coinbase also plan to facilitate this transition by contributing to nationwide digital finance education initiatives.
“Bermuda has always believed that responsible innovation is best achieved through partnership between government, regulators, and industry,” said David Burt, Premier of Bermuda. “With the support of Circle and Coinbase, two of the world’s most trusted digital finance companies, we are accelerating our vision to enable digital finance at the national level.”
In a separate statement, Circle highlighted Bermuda’s highly entrepreneurial economy as the main beneficiary of an on-chain economy. Local businesses can benefit from a model that relies less on onshore payment processors, which tend to drive up fees and narrow merchant margins.
Bermuda’s latest announcement is consistent with the island’s long-standing engagement with digital assets.
Bermuda’s shift toward an on-chain economy builds on years of government engagement with digital assets.
A major milestone came in 2018 with the introduction of the Digital Asset Business Act framework. The legislation established licensing requirements for exchanges, custodians, issuers, and payment providers operating within Bermuda.
Oversight responsibilities were assigned to the Bermuda Monetary Authority, aligning supervision with existing financial services regulation standards. Subsequent legislation expanded the framework to address digital asset issuance and nationwide prudential reporting obligations.
Government agencies also engaged industry participants through regulatory sandboxes and pilot programs. During this period, digital asset firms like Circle, Coinbase, and Binance secured licenses to operate in the jurisdiction.
The on-chain economy initiative reflects a continuation of existing policy rather than a sudden change in direction. It marks the next phase of the government’s long-standing effort to integrate digital assets into the country’s financial infrastructure.
Read original story Bermuda’s Economy Goes On-Chain With the Help of Circle and Coinbase by Camila Grigera Naón at beincrypto.com