Bermuda Pioneers World’s First Fully On-Chain National Economy with Coinbase and Circle
Bermuda is embarking on a transformative journey to establish the world’s first fully on-chain national economy. The government announced Monday its strategic partnership with leading cryptocurrency exchange Coinbase and stablecoin issuer Circle, aiming to integrate digital assets as the foundational financial infrastructure for its government, businesses, and citizens.
Unveiling a Vision at the World Economic Forum
This ambitious initiative was officially unveiled during the annual meeting of the World Economic Forum (WEF) in Davos, Switzerland. Under the collaboration, Coinbase and Circle will provide Bermuda’s government, local banks, insurance providers, small and medium-sized enterprises (SMEs), and general consumers with robust digital asset infrastructure and enterprise-grade tools. A key component of this partnership also includes a nationwide program dedicated to digital financial education and technical training, ensuring broad adoption and understanding across the island.
Addressing Economic Challenges with Blockchain Innovation
The Bermuda government highlighted that, as an island jurisdiction often grouped with regions like the Caribbean, its local businesses frequently encounter significant hurdles. These include disproportionately high transaction fees and limited access to traditional fiat banking services from mainland countries, leading to a substantial erosion of profit margins for merchants. This innovative on-chain economy is designed to circumvent these traditional inefficiencies, offering a more streamlined and cost-effective financial ecosystem.
Premier E. David Burt emphasized the profound impact of this undertaking: “This initiative is set to unlock unprecedented opportunities and dramatically reduce costs, ensuring that the people of Bermuda are at the forefront of benefiting from the dividends of future finance.”
A Phased Rollout for a Digital Future
The strategic roadmap outlines a phased implementation approach. Initially, government departments in Bermuda will pilot stablecoin payments, demonstrating the practical application of digital currencies in public services. Concurrently, financial institutions will begin integrating asset tokenization tools, enabling new forms of digital asset management and investment. For the broader public, a comprehensive national digital financial literacy education program will be rolled out, gradually familiarizing citizens with the use and benefits of on-chain tools and digital assets.
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