Crypto: Why Bermuda Is Testing A Fully Onchain Economy Instead Of Crypto...

When Bermuda announces its ambition to become the world’s first fully onchain national economy with support from Circle and Coinbase, you could picture a dramatic, quick overhaul. However, that is not the case.

To be a fully onchain economy, Bermuda has not taken a hard route, which might involve instantly building government services and pushing merchants to accept digital payments. Instead, the island is following a cautious path of well-thought-out, regulated innovation in finance.

The island intends to begin with carefully designed pilots. It will work through licensed and supervised institutions, share the results with transparency and only expand when the systems prove reliable and effective. The goal is to position “onchain” as dependable, everyday infrastructure rather than a radical, quick shift.

As outlined in the announcement at the World Economic Forum, Bermuda is focusing on rolling out digital asset infrastructure across government departments, local banks, insurers, businesses and everyday consumers.

The early emphasis appears to be on stablecoin-powered payments and expanded financial tools rather than abruptly replacing traditional systems.

No legislation making crypto or stablecoins legal tender

No prohibition on cards, bank wires, cash or other conventional payment methods

No immediate push for the population to switch to self-custody wallets.

Bermuda’s approach is pragmatic; it focuses on establishing the efficacy of the infrastructure before broadening its reach.

Did you know? Bermuda was among the first jurisdictions to allow insurers and reinsurers to experiment with blockchain record-keeping, long before “onchain economy” became a buzzword.

Source: CoinTelegraph