Bermuda Partners with Coinbase and Circle to Pioneer the World’s First Fully Onchain National Economy
The government of Bermuda reached a historic milestone in digital governance on January 19, 2026, by announcing a comprehensive partnership with Coinbase and Circle to transform the island into the world’s first “fully onchain” national economy. Unveiled at the World Economic Forum in Davos, this strategic initiative aims to integrate digital asset infrastructure into every layer of Bermuda’s financial and administrative framework. Under the leadership of Premier David Burt, the government will utilize Coinbase’s Base network and Circle’s USDC stablecoin to streamline public sector payments, reduce transaction costs for small businesses, and provide residents with modern digital wallets. This move builds upon Bermuda’s 2018 Digital Asset Business Act, shifting the country from being a mere regulatory hub to an active participant in a blockchain-based financial system. By digitizing the national economy, Bermuda intends to create a transparent, high-velocity financial environment that keeps economic value circulating locally while providing seamless access to global liquidity.
Pilot Programs and the Integration of USDC into Daily Bermudian Life
The transition to an onchain economy will begin with immediate pilot programs where government agencies will accept and distribute stablecoin-based payments for taxes, fees, and services. Coinbase and Circle will provide the necessary enterprise tools and technical onboarding to local banks and insurers, ensuring that the legacy financial sector is not bypassed but rather upgraded. To foster grassroots adoption, the government plans to expand upon the successful 2025 “digital airdrop” by launching a nationwide digital literacy program and a larger consumer stimulus during the Bermuda Digital Forum in May 2026. This initiative is designed to demonstrate that blockchain technology can serve as a superior alternative to expensive and restrictive traditional payment rails. By using USDC as a primary medium of platform, Bermudian businesses can accept instant, low-cost payments from around the world, effectively eliminating the multi-day settlement delays that have historically hindered the island’s entrepreneurial growth.
A Global Model for Sovereign Digital Finance and Regulatory Innovation
The Bermuda partnership is being closely watched by international observers as a potential blueprint for sovereign digital transformation. Coinbase CEO Brian Armstrong praised the initiative as a testament to what is possible when “clear rules are paired with strong public-private collaboration,” while Circle’s Jeremy Allaire described the island as a global test case for regulated digital finance. Unlike previous experiments in other jurisdictions, Bermuda’s approach is anchored in a mature legal framework that prioritizes investor protection and institutional compliance. The non-exclusive nature of the partnership allows Bermuda to remain a flexible laboratory for various blockchain technologies, ensuring the national infrastructure remains at the cutting edge. As the world moves closer to a decentralized financial future, Bermuda’s bold leap onto the Base network signals a new era where national borders no longer define the speed or efficiency of capital movement, potentially inspiring other small, agile nations to follow suit in the pursuit of economic freedom.
