BERMUDA LAUNCHES HISTORIC DIGITAL ECONOMY INITIATIVE AT DAVOS
DAVOS, SWITZERLAND – In a groundbreaking announcement at the World Economic Forum Annual Meeting, the Bermuda government revealed its ambitious strategy to become the world’s first fully onchain national economy. This transformative initiative is being developed in collaboration with leading digital asset companies Circle and Coinbase, marking a significant milestone in global financial innovation.
The partnership will leverage Circle and Coinbase’s advanced digital asset infrastructure and enterprise-grade tools to revolutionize Bermuda’s financial ecosystem. The comprehensive rollout will extend to government services, local banking institutions, insurance providers, SMEs, and individual consumers. Additionally, both companies will implement nationwide digital finance education programs and technical onboarding support to ensure seamless adoption.
According to official government statements, transitioning to an onchain economy represents a fundamental shift toward utilizing digital assets as primary financial infrastructure. This move addresses critical challenges faced by Bermuda’s entrepreneurial economy, where traditional payment systems have proven costly and restrictive. The island’s classification alongside Caribbean jurisdictions has historically resulted in elevated processing fees and compressed merchant margins through conventional banking channels.
Central to this transformation is the integration of USDC (USD Coin), Circle’s dollar-pegged stablecoin distinct from central bank digital currencies. This technology enables merchants to process rapid, low-cost transactions denominated in US dollars, providing unprecedented efficiency for daily commercial activities.
Government officials highlighted multiple successful local implementations already demonstrating how onchain digital payments facilitate local transactions, support economic growth, and maintain regulatory compliance through modernized systems.
This announcement builds upon Bermuda’s established leadership in digital asset regulation, dating back to 2018 when the territory implemented the pioneering Digital Asset Business Act – among the world’s first comprehensive regulatory frameworks for digital assets. Both Circle and Coinbase were early licensees under this legislation and have subsequently expanded operations within Bermuda’s growing digital finance ecosystem.
The current partnership follows a significant demonstration at the Bermuda Digital Finance Forum 2025, where organizers executed a large-scale USDC airdrop distributing 100 USDC to each attendee for use with newly onboarded merchants. Subsequent developments have seen additional Bermudian businesses embracing digital payments, while local financial institutions have expanded their utilization of stablecoins and tokenized finance solutions.