Bermuda's On-Chain Revolution: A New Era for Finance

The island nation of Bermuda is on the cusp of a revolution in finance, as it partners with Circle and Coinbase to adopt on-chain financial infrastructure.

TL;DR
• Bermuda partners with Circle and Coinbase to adopt on-chain financial infrastructure.
• The initiative aims to enable fast, low-cost payments and reduce reliance on traditional intermediaries.
• Digital literacy programs will play a key role in the adoption of blockchain-based finance.

Summary
The Government of Bermuda, in partnership with Circle and Coinbase, has announced a national plan to adopt on-chain financial infrastructure. This initiative aims to equip government agencies, banks, insurers, small and medium-sized businesses, and consumers with the necessary tools for a nationwide transition to blockchain-based finance. Key aspects of the initiative include piloting stablecoin payments and tokenization tools.

The partnership is expected to benefit Bermuda's highly entrepreneurial economy, which comprises thousands of local businesses. By using alternative payment systems like Circle's USDC, the island nation can enable fast, low-cost, dollar-denominated payments. This transition is anticipated to reduce reliance on traditional intermediaries, enhance access to global capital, and keep more economic value circulating within the island.

Some of the expected outcomes of this initiative include:
• Government agencies piloting stablecoin-based payments
• Financial institutions integrating tokenization tools
• Residents participating in nationwide digital literacy programs

Bermuda has been pro-crypto, establishing the Digital Asset Business Act in 2018, which has attracted over 40 licensed virtual asset service providers. Circle and Coinbase have also secured licenses to operate in the country, with Circle receiving a full Class F DABA license in 2019 and Coinbase securing its Class F license in April 2023.

The initiative is seen as a step towards creating opportunity, lowering costs, and ensuring Bermudians benefit from the future of finance. While an exact timeline for full-scale implementation was not provided, some local businesses have already started accepting digital payments following a USDC airdrop event last year.

As Bermuda embarks on this new journey, it's essential to consider the potential implications for the island nation's economy and its people.