The government of Bermuda has reportedly become the first jurisdiction to accept tax payments in the USDC stablecoin.
Financial services company, Circle, which issues the stablecoin cryptocurrency announced the development Wednesday, and labeled it as part of a broader move by the European nation to encourage “the use of USD-dollar backed stablecoins and decentralized finance protocols and services.”
According to Circle co-founder and CEO Jeremy Allaire, Bermuda’s Premier, 40-year old Edward David Burt, “made a broader announcement today about embracing stablecoins as the future of the financial system.”
The focus of the initiative by the Premier is to promote innovations in fintech that can deliver value not just for Bermudians, but also globally via companies licensed under their Digital Asset Business Act, Jeremy explained.
The Circle CEO further noted that the move to adopt a dollar-backed stablecoin could only come off as natural to Bermuda, whose currency, the Bermudian dollar is backed by the United States Dollar.
“It’s natural that they would both embrace USD-backed stablecoins for their own government services,” Jeremy had said in a press release.
Meanwhile, he also disclosed that Circle had acquired a “Class F” license under Bermuda’s Digital Assets Business Act (DABA) of 2018, a development that makes the company one of the first to receive such regulatory approval in the country.
Without a doubt, the latest adoption of USDC for tax payments in Bermuda continues the upward trajection of the stablecoin cryptocurrency. Just last month, we reported that U.S cryptocurrency exchange, Coinbase, now pays out a 1.25 percent annual interest to USDC holders.