Coinbase Powers Bermuda’s Historic Leap: World’s First Fully On-Chain National Economy

In a landmark announcement at the 2026 World Economic Forum, Bermuda has unveiled its ambitious plan to become the world's first nation to operate its entire economy on a blockchain infrastructure. This groundbreaking initiative is being developed in partnership with cryptocurrency giants Coinbase and Circle, positioning the small island nation as a pioneering global test case for a fully tokenized economy. The technical backbone of this transformation will enable instant USDC settlements for all businesses, fundamentally reshaping how government services, financial institutions, and retail operations function. This MOVE represents a significant milestone in the institutional adoption of blockchain technology and stablecoins, with Coinbase playing a central role in providing the foundational exchange and infrastructure expertise. The partnership underscores a major step toward realizing the vision of seamless, transparent, and efficient digital economies, potentially setting a new standard for nations worldwide. As of January 2026, this development marks one of the most concrete and comprehensive integrations of cryptocurrency into a sovereign state's economic framework, signaling a bullish future for digital assets in mainstream finance.

Bermuda to Become First Nation with Full On-Chain Economy via Coinbase and Circle Partnership

Bermuda announced at the World Economic Forum its unprecedented move to transition all economic activity—including government services, financial institutions, and retail—onto blockchain infrastructure. The initiative, developed with Coinbase and Circle, positions the island as a global test case for tokenized economies.

The technical backbone will enable instant USDC settlements for businesses and citizens alike. Early adopters already demonstrate sub-second transaction finality at near-zero cost, bypassing traditional banking delays and fees. This builds upon Bermuda's 2018 Digital Asset Business Act, which established its early regulatory framework.

Last year's pilot program proved decisive. A 100 USDC airdrop to forum attendees circulated through newly enabled merchants, creating organic network effects. Local banks and insurers subsequently joined the ecosystem, validating the model's scalability.

Bermuda Announces Full Transition to Blockchain-Based Economy

Bermuda has become the first nation to fully embrace blockchain technology for its entire financial system. Premier E. David Burt revealed the groundbreaking move during the World Economic Forum in Davos, positioning the island ahead of global counterparts still debating digital finance.

The partnership with Coinbase and Circle will migrate all financial operations—from tax collection to retail transactions—onto blockchain infrastructure. USDC stablecoin will serve as the backbone for instant settlements, eliminating the 3-6% fees Bermudian businesses currently pay for traditional banking services.

This radical shift addresses Bermuda's long-standing financial isolation. By leveraging Coinbase's Base network, the island bypasses correspondent banking bottlenecks that have plagued small economies. A Hamilton merchant can now receive payments in seconds rather than waiting days for bank clearance.