At the World Economic Forum Annual Meeting, the Government of Bermuda announced plans to become the world’s first fully onchain national economy.
The initiative has direct support from Circle, the issuer of USDC, and crypto exchange Coinbase. The move offers a clear look at how blockchain can shift from theory to everyday use.
What an Onchain Economy Really Means
An onchain economy uses digital assets as regular financial plumbing. Instead of relying only on banks, card networks, and slow cross border payments, people and businesses use blockchain based tools like stablecoins. Stablecoins are digital tokens designed to hold a steady value. USDC, for example, is pegged to the US dollar.
For Bermuda, this matters. The island has thousands of small and medium sized businesses, many of which face high fees and long settlement times because traditional payment rails treat island economies as higher risk. Those extra costs eat into already thin margins.
We’re working with @coinbase to support @BdaGovernment in their plans to build the world’s first fully onchain national economy.
We’re expanding access to @USDC, onchain infrastructure, and digital finance education at a national scale.https://t.co/PYFmy9fVYh pic.twitter.com/v3ccIzfn3f
— Circle (@circle) January 19, 2026
With USDC, a local café or insurance firm can accept dollar based payments that settle in minutes, not days, often at a fraction of the cost. Circle says several Bermudian merchants already use onchain payments today, showing how digital finance can work within compliance rules while keeping money moving locally.
A real world example came at the Bermuda Digital Finance Forum 2025. The government, Circle, and Coinbase airdropped 100 USDC to every attendee. Participants spent that USDC at newly onboarded local merchants, creating instant economic activity and hands on learning. Since then, more businesses have started accepting digital payments, and local financial institutions have expanded their use of stablecoins and tokenized finance.
Why This Matters for Investors and the Industry
This announcement builds on a long regulatory runway. Bermuda introduced its Digital Asset Business Act in 2018, becoming the first jurisdiction with a full digital asset framework. Circle and Coinbase were among the earliest firms licensed under that regime.
We’re bringing an entire country onchain.
Bermuda is building the world’s first fully onchain national economy, with support from Coinbase and @Circle. pic.twitter.com/fFL1foSFHu
— Coinbase 🛡️ (@coinbase) January 19, 2026
That clarity reflects a wider trend. According to a 2024 report from Chainalysis, stablecoin transfers now account for over half of all onchain transaction volume globally, driven by payments and remittances rather than speculation. Governments and banks are paying attention because stablecoins combine blockchain speed with familiar currencies.
Bermuda’s model also highlights a growing playbook. Public private partnerships that pair clear rules with real pilots. Government agencies will test stablecoin payments, banks will integrate tokenization tools, and residents will join nationwide digital finance education programs.
Disclaimer
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