In a groundbreaking move, Bermuda has announced a partnership with leading cryptocurrency companies Coinbase and Circle to transition its entire national economy onto the blockchain. This initiative, unveiled at the World Economic Forum Annual Meeting in Davos, marks a significant step towards creating the world’s first “onchain” financial system within a sovereign nation.
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The collaboration between Bermuda, Coinbase, and Circle aims to leverage blockchain technology to address the inefficiencies and limitations of traditional payment systems. By incorporating Circle’s USDC stablecoin as a primary payment method, Bermuda seeks to facilitate faster, cheaper, and more inclusive transactions for its citizens and businesses.
Bermuda’s decision to embrace blockchain technology on a national scale builds upon its proactive approach to digital asset regulation. In 2018, the country introduced the Digital Asset Business Act, laying the groundwork for the licensing of global firms like Circle and Coinbase under a comprehensive regulatory framework.
Premier E. David Burt emphasized the importance of collaboration between government, regulators, and industry in driving responsible innovation. By partnering with established digital finance companies like Circle and Coinbase, Bermuda aims to accelerate the adoption of digital finance at the national level, setting a precedent for other countries to follow.
The move towards an onchain economy in Bermuda has garnered praise from industry leaders, with Jeremy Allaire, CEO of Circle, highlighting the country’s commitment to digital asset development. Coinbase CEO Brian Armstrong commended Bermuda’s leadership in establishing clear rules and fostering public-private collaboration to drive economic transformation.
The partnership between Bermuda, Coinbase, and Circle will involve the integration of blockchain infrastructure and tools into local banks, insurers, and businesses, paving the way for a fully onchain financial ecosystem. Government agencies will pilot stablecoin-based payments, while financial institutions will explore tokenization tools to enhance the efficiency and transparency of financial transactions.
As Bermuda embarks on this pioneering journey towards a fully onchain economy, the global financial industry will closely monitor the outcomes of this ambitious initiative. The project will serve as a real-world testbed for evaluating the potential of blockchain technology to reduce transaction costs, promote financial inclusion, and enhance economic resilience at a national scale.
In conclusion, Bermuda’s partnership with Coinbase and Circle represents a significant milestone in the evolution of digital finance and blockchain technology. By embracing innovation and collaboration, Bermuda is poised to lead the way in establishing a fully onchain economy that empowers its people, businesses, and institutions.
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References:
– https://cointelegraph.com/news/bermuda-coinbase-circle-onchain-economy?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound
– https://www.financemagnates.com/cryptocurrency/bermuda-partners-with-circle-and-coinbase-to-build-worlds-first-onchain-national-economy/
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