Bermuda Accepts Tax Payments in USDC Stablecoin

Suzat

October 16, 2019 9:28 pm

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Circle, one of the global financial service companies has announced that Bermuda became the first government to accept its stablecoin USD Coin (USDC) for tax payments. According to the announcement, the development is part of a broader initiative, which sees the Bermuda government support “the use of USD-dollar backed stablecoins and decentralized finance protocols and services.” 

Jeremy Allaire, CEO, and Co-founder of Circle stated:

“Bermuda’s Premier made a broader announcement today about embracing stablecoins as the future of the financial system, with a focus on innovations in fintech that can deliver value not just for Bermudians, but also globally via company’s licensed under their Digital Asset Business Act.”

The CEO also added that Bermuda’s economy already relies on a United States dollar-backed currency, Bermudian dollar. According to Allaire, “it’s natural that they would both embrace USD-backed stablecoins for their own government services.” 

Circle also added that the company has been awarded a “Class F” license under Bermuda’s Digital Assets Business Act (DABA) of 2018. It says that this license makes the company the first major cryptocurrency exchange and wallet service ever to receive such a permit. 

Allaire commented:

“Through the DABA, Bermuda is one of the first countries in the world to create a comprehensive regulatory framework for digital currency and digital asset-based products and services, including licensing of firms operating payment systems using stablecoins. It will be interesting to see how other governments will respond to this fundamental innovation.”

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