Bermuda has unveiled plans to transform its entire economy to run on blockchain technology, partnering with Circle and Coinbase to build digital asset infrastructure for government agencies, financial institutions, and businesses, according to an announcement made Monday at the World Economic Forum in Davos.
The initiative would make the Atlantic island the first country to fully adopt onchain payments and digital finance as its primary economic infrastructure. Circle and Coinbase plan to provide enterprise tools and support digital finance education nationwide, the government said.
Premier E. David Burt framed the move as addressing high costs in Bermuda's current financial system. Traditional payment processors charge elevated fees for Caribbean and island jurisdictions, cutting into merchant profits, according to the announcement.
The transition centers on USDC, Circle's dollar-pegged stablecoin, which allows merchants to accept fast, low-cost payments denominated in U.S. dollars. Some Bermudian businesses have already begun accepting digital payments.
Bermuda established a regulatory framework for digital assets in 2018 through the Digital Asset Business Act, becoming an early mover in cryptocurrency oversight. Both Circle and Coinbase obtained licenses under that regime.
At last year's Bermuda Digital Finance Forum, the partners distributed 100 USDC to every attendee for spending with participating local merchants. The 2026 forum, scheduled for May 11-14, will expand the program.
The government said pilots will begin with stablecoin payments in government agencies, tokenization tools for financial institutions, and digital literacy programs for residents.
