Bermuda chooses USDC Stablecoin as the principal way for Bermudans to pay each other
- Future of Finance
- Jan 18
- 2 min read
The government of Bermuda is working with Circle and Coinbase to put the island economy on blockchain
Circle will provide the USDC Stablecoin and Coinbase the blockchain infrastructure
Payments by USDC are merely the starting point for tokenisation of all financial transactions and assets in Bermuda
The Government of Bermuda has announced it plans to move the island’s economy on to the blockchain, initially by embracing the USDC Stablecoin issued by Circle as the principal means of domestic payment. Coinbase is providing the blockchain infrastructure.
This is not a Proof of Concept or a Pilot Test. The Government of Bermuda is explicitly telling Bermudan consumers and businesses – including banks – to pay and get paid in USDC.
Indeed, businesses are expected to support nationwide digital finance education courses, and to help with technical onboarding of customers.
According to a Circle press release, there are “multiple live examples” of individuals making on-chain payments already. Volumes are expected to increase as merchants tire of paying the transaction processing fees of incumbent payment service providers.
At the Bermuda Digital Finance Forum 2025, 100 USDC were airdropped to every attendee for use with newly onboarded local merchants.
Coinbase CEO Brian Armstrong, who has argued lately that Stablecoins are a safer form of commercial banks money than fractional reserve banking, puts an ideological spin on the news.
“Coinbase has long believed that open financial systems can drive economic freedom,” he says. “Bermuda’s leadership shows what’s possible when clear rules are paired with strong public-private collaboration. We are excited to support Bermuda’s transition toward an on-chain economy that empowers local businesses, consumers, and institutions.”
Coinbase is embedded in Bermuda already, having opened its Coinbase International Exchange derivatives platform on the island in 2023.
Likewise, Circle has been licensed to operate in Bermuda since 2018 and has worked closely with the Bermuda Monetary Authority (BMA) and the government ever since.
In 2021 the BMA licensed Circle Yield, a product aimed at adding cryptocurrencies to the portfolios of corporate treasurers, though the company stopped accepting new loans in November 2022.
Circle also moved Poloniex, a token exchange it acquired in February 2018, to Bermuda to take advantage of the regulatory regime there. That year Bermuda had become the first jurisdiction to introduce a comprehensive digital asset framework through the Digital Asset Business Act (DABA).
The acquisition was not a success and was spun out of Circle 18 months later. In 2021 the Securities and Exchange Commission (SEC) fined Poloniex “more than US$10 million” to settle charges for operating an unregistered online digital asset exchange between July 2017 and November 2019. [1]
The Bermuda government believes transitioning to a fully blockchain financial economy will lower transaction costs throughout the economy and widen access for local businesses to global finance via digital wallets.
“Bermuda has always believed that responsible innovation is best achieved through partnership between government, regulators, and industry,” says Bermuda Premier David Burt. “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. This initiative is about creating opportunity, lowering costs, and ensuring Bermudians benefit from the future of finance.”
