Why Bermuda Is Testing a Fully Onchain Economy Instead of Crypto Mandates

Bermuda is pursuing a disciplined, phased approach to becoming a fully onchain national economy, focusing on regulated innovation rather than immediate, sweeping mandates. The strategy involves carefully designed pilots within licensed and supervised institutions, emphasizing stablecoin-powered payments and expanded financial tools across government, banks, and businesses, without making digital assets legal tender or prohibiting conventional payment methods.

This pragmatic approach is supported by Bermuda's existing robust regulatory framework, notably the Digital Asset Business Act (2018), overseen by the Bermuda Monetary Authority (BMA). The BMA's tiered licensing system allows firms to test concepts under strict controls, enabling iterative refinement of rules and risk containment. As a compact jurisdiction with high reliance on cross-border transactions, Bermuda prioritizes the efficiency blockchain rails offer over ideology.

The decision to test rather than mandate aims to avoid public resistance over privacy and overreach, focusing instead on building reliability for critical services like government payments. Pilots allow rigorous testing of onboarding, reconciliation, and fraud monitoring. By collaborating with established partners like Circle and Coinbase, Bermuda leverages existing enterprise-grade infrastructure and trust, ensuring optionality, transparency, and strong consumer safeguards remain central to earning sustainable adoption.

(Source：Cointelegraph)