According to worldwide financial services firm Circle, residents of Bermuda can now pay their taxes as well as other government services using USD Coin (USDC). This makes the Bermuda government the first one in the world to accept USDC for tax payments.
In a press statement released on Wednesday, the government of Bermuda stated that it is now accepting payments in USD Coin (USDC) for taxes, fees as well as other government services. As per the press statement, the move is just part of a wider initiative by the government that will enhance it’s backing for USD pegged stablecoins as well as decentralized finance protocols and services.
According to Circle co-founder and CEO Jeremy Allaire the Bermudian prime minister has directed his government members to embrace stablecoins as the future of the financial system. Allaire explained that the move will also focus on innovations in fintech in order to deliver value to not only Bermudians but also worldwide firms licensed in the country under the Digital Asset Business Act.
Allaire also expressed that it was just a natural thing for Bermuda to support USD pegged stablecoins since the economy of the country highly relies on US dollar backed money, the Bermudian dollar. Allaire also explained that the move by Bermudian government is a sign that the globe is on it’s way towards mass adoption of stablecoins in everyday transactions as well as commerce.
Circle also revealed that it had secured a ‘Class F’ license as per the provisions of the country’s Digital Assets Business Act (DABA) of 2018. As per the firm, the license makes it the first crypto exchange and wallet services provider to be granted such a permit.
Allaire hailed Bermuda for being one of the first nations in the world to develop a comprehensive regulatory policy to guide the digital money and assets industry comprising of licensing of companies that operate payment platforms utilizing stablecoins.
He urged other nations to follow the precedent set by Bermuda and come up with regulatory frameworks that will enhance innovation in the industry rather than curtailing it, Cointelegraph reports.