Bermuda Lays Out Plan to Become the World’s First Fully Onchain Economy

The initiative, unveiled during meetings at the World Economic Forum in Davos, is being developed with support from digital asset firms Circle and Coinbase.

Rather than treating blockchain as a standalone innovation or limited pilot, Bermuda’s proposal positions onchain infrastructure as a foundational layer for how money moves across the economy. The government says the initiative is designed to integrate blockchain-based systems into public services, financial institutions, local businesses, and consumer payments, with the goal of making digital finance a practical part of daily life rather than a niche technology.

At the centre of the plan is the use of stablecoin-based payment rails, with USDC expected to play a key role in facilitating transactions and settlement. By using blockchain-based digital dollars, Bermuda aims to support faster and more efficient payments while reducing friction associated with traditional financial processes. The approach reflects a broader shift toward viewing stablecoins as functional payment tools rather than speculative crypto assets.

Circle said it will provide digital asset infrastructure and technical support to help deploy onchain payments and financial services across both the public and private sectors. Coinbase is expected to contribute technology and ecosystem support to expand access to blockchain-based tools for institutions, merchants, and developers operating in Bermuda. Together, the companies are intended to support the rollout of onchain services that can be used by government agencies, businesses, and residents alike.

Bermuda’s strategy is built around a partnership-driven framework that emphasises cooperation between public institutions and the private sector. The approach, outlined by The Hon. E. David Burt, JP, MP, Premier of Bermuda, positions collaboration between government, regulators, and industry as the foundation for scaling digital innovation in a controlled and practical way.

“Bermuda has always believed that responsible innovation is best achieved through partnership between government, regulators, and industry,” said Premier Burt. “With the support of Circle and Coinbase, two of the world’s most trusted digital finance companies, we are accelerating our vision to enable digital finance at the national level. This initiative is about creating opportunity, lowering costs, and ensuring Bermudians benefit from the future of finance.”

A key focus of the initiative is real-world adoption. The plan includes efforts to increase familiarity with onchain payments and digital financial tools among businesses and consumers, encouraging everyday usage rather than purely experimental deployments. By pairing infrastructure development with education and outreach, the government aims to lower barriers to entry and ensure that participation in the onchain economy extends beyond early adopters.

The announcement builds on Bermuda’s existing engagement with digital finance and blockchain-related initiatives. Over recent years, the island has positioned itself as a jurisdiction willing to explore new financial technologies under regulatory supervision, working closely with industry participants to align innovation with policy objectives. Officials described the move toward a fully onchain economy as a natural next step in that broader strategy.

Unlike central bank digital currency projects being explored elsewhere, Bermuda’s plan does not involve issuing a sovereign digital currency. Instead, it relies on existing private-sector digital asset infrastructure to support onchain activity. This model highlights a different approach to blockchain adoption, one that prioritizes partnerships and interoperability over the creation of new state-issued monetary instruments.

Supporters of the initiative argue that embedding onchain infrastructure at the national level could improve efficiency, transparency, and access to financial services, particularly for smaller economies that depend heavily on cross-border payments. At the same time, the project is expected to attract close attention from policymakers and industry participants as it moves from announcement to implementation.

Bermuda’s onchain economy plan could offer a real-world example of how blockchain technology can function as part of a national economic framework rather than operating on the margins. As the initiative progresses, it may provide insights into whether onchain systems can scale beyond individual use cases and support the day-to-day workings of a modern economy.