Bermuda has become the first government to accept the USDC stablecoin for tax payments, marking a milestone for cryptoasset adoption.
According to the announcement made Oct. 16, global financial services company Circle has confirmed Bermuda to be the first government to accept its dollar-backed stablecoin USDC for taxes. Circle calls the development the first step in a broader initiative that will involve the Bermuda government supporting the use of stablecoins and “decentralized finance protocols and services.”
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.
Allaire explained that Bermuda’s acceptance of USDC was in part due to the country’s economy already operating with a dollar-backed fiat currency, the Bermudian dollar. He said it was “natural” that they would embrace the USDC stablecoin for government services, and called the adoption of crypto for tax payments a movement towards mainstream acceptance.