In a groundbreaking announcement at the World Economic Forum in Davos, Bermuda declared its ambition to become the world's first fully onchain national economy. Premier E. David Burt unveiled the plan, partnering with crypto giants Circle and Coinbase to embed blockchain infrastructure across government, banks, businesses, and everyday consumers.​ This is a wholesale transformation of how money moves on the tiny Atlantic island of 64,000 people, where international business drives 85% of GDP, mainly reinsurance.​

Image Source: Coinbase

Roots in Crypto Leadership

Bermuda's journey started in 2018 with the Digital Asset Business Act (DABA), making it one of the first places to license crypto firms like Circle and Coinbase under Bermuda Monetary Authority oversight. Sandboxes and pilots followed, fostering a mature ecosystem. Now, they're taking it national, using USDC for stable, low-cost payments already live with local merchants.​ The timing feels perfect amid global crypto maturation. Bermuda wants to sidestep high offshore fees that bleed small economies dry.​

The Onchain Blueprint

Circle and Coinbase will roll out digital asset tools: wallets, payment rails, tokenization for assets, and enterprise APIs for insurers and SMEs. Government pilots test stablecoin payroll and procurement; banks get onchain settlement to slash costs.​ Nationwide education programs aim to onboard everyone from tourists buying conch fritters to reinsurance execs tokenizing policies. USDC keeps it dollar-pegged and compliant, blending innovation with real-world needs.​

Economic Wins on the Horizon

Expect frictionless cross-border flows, retaining value locally instead of losing it to processors. Merchants gain instant, cheap USD payments; residents access global finance via phones. "This empowers responsible innovation at scale," Burt said, highlighting lower costs and better access.​ Jeremy Allaire, Circle's CEO, praised Bermuda's pioneer status: "They show blockchain done right." Coinbase echoed support for infrastructure that boosts efficiency.​ Critics might call it risky for a reinsurance hub, but Bermuda's track record suggests savvy. If successful, it could inspire El Salvador's upgrades or Dubai's hubs, proving small nations lead digital finance revolutions.​