Bermuda announced plans at the World Economic Forum in Davos on Monday to become the first country in the world to build a national economy fully based on blockchain technology.
Circle and Coinbase have committed to providing the digital asset infrastructure and business support tools necessary to help Bermuda navigate this transition.
Bermuda moves its payment system onto on-chain.
This initiative aims to integrate digital assets into the nation's day-to-day financial system, enabling blockchain-based systems to support activities such as payments and other critical economic transactions.
Circle and Coinbase also plan to support this transition by participating in nationwide digital financial education programs .
“Bermuda has always believed that responsible innovation works best through collaboration between government, regulators, and businesses,” Chia Bermuda’s Premier, David Burt. “With support from Circle and Coinbase, two of the world’s leading digital finance companies, we are accelerating our vision of bringing digital finance to a national level.”
In a separate statement, Circle argued that Bermuda's economy, with its strong entrepreneurial spirit, would be a major beneficiary of building a blockchain-based economy. Local businesses could benefit from a model that reduces reliance on domestic payment processors, which often increases service fees and reduces profits for businesses.
Bermuda's recent announcement aligns with the island nation's long-term strategy of developing its digital asset sector.
History of digital asset policy
Bermuda has been preparing for the transition to a blockchain-based economy for years through government involvement in the digital asset sector.
A significant milestone occurred in 2018 when the Digital Asset Business Act was enacted. This law established licensing requirements for exchanges, custodians, issuers, and payment service providers operating in Bermuda.
The regulatory mandate has been assigned to the Bermuda Monetary Authority , ensuring oversight aligns with current financial services regulatory standards. Further legal adjustments have also been implemented to cover the issuance of digital assets and mandate nationwide reporting.
Government agencies also collaborate with industry members through regulatory framework testing programs (sandboxes) and practical pilot projects. During this time, digital asset companies such as Circle, Coinbase, and Binance received operating licenses here.
Bermuda's initiative to build a blockchain-based economy is a continuation of a previously established policy trend, rather than a sudden shift. It is XEM as a new phase in the government's long-term effort to integrate digital assets into the nation's financial system.
