Bermuda just announced one of the most ambitious national blockchain projects to date. The island nation is partnering with Coinbase and Circle to build what it’s calling a “fully onchain” digital economy according to Circle.
The collaboration, unveiled at the World Economic Forum in Davos, will pilot blockchain infrastructure for stablecoin payments and tokenization across Bermuda’s economy. The project relies on USDC stablecoins and Coinbase’s Base blockchain, according to press materials from the World Economic Forum.
Bermuda is building on its 2018 Digital Asset Business Act, legislation the government designed to attract digital asset companies and establish regulatory clarity in the sector.
“This initiative will lower costs and create new opportunities for Bermudians,” a Bermuda government official said in the announcement.
Coinbase detailed its involvement in supporting the technical infrastructure, with the project running on Base, the company’s Ethereum layer-2 network. “We are excited to support Bermuda’s vision as a leader in digital economy innovation,” a Coinbase representative said.
Circle’s role centers on its USDC stablecoin, which will serve as a primary medium of exchange in the digital economy framework. The company highlighted Bermuda’s crypto-friendly regulatory environment as a key factor in the partnership.
The government plans to boost digital literacy among residents as part of the rollout, recognizing that widespread adoption will require education alongside infrastructure. Local businesses in Bermuda are already adopting digital payment systems, the announcement said, suggesting some groundwork has been laid for the transition.
Bermuda’s move reflects a broader trend of governments exploring blockchain integration into financial systems. The island’s small size and existing regulatory framework may give it advantages in piloting such an ambitious project compared to larger nations with more complex financial infrastructures.
The initiative’s actual impact remains to be seen as implementation details are still being developed. Success could position Bermuda as a model for other jurisdictions considering similar blockchain-based economic systems. Challenges in execution, however, could offer cautionary lessons about the limits of onchain governance and commerce at a national scale.
