Bermuda recently made a big move at the Davos Forum—deciding to build the world's first fully on-chain national economic system. This is quite interesting because it is backed by heavyweight players like Circle and a compliant stablecoin platform.

In simple terms, the core approach is to replace traditional payment systems with USDC and other dollar-pegged stablecoins. Think about it— for an island economy composed of thousands of small and medium-sized enterprises, the fees for traditional cross-border payments are ridiculously high, eating up a large chunk of merchants' profits. Switching to on-chain payments? Fast, low-cost, dollar-denominated, and instantly boosting the local economy.

This move is not a spur-of-the-moment idea. As early as 2018, Bermuda introduced the world's first Digital Asset Business Act, with a clear regulatory framework. Circle and that compliant platform were among the first international companies to obtain licenses under this framework. With such thorough groundwork, it’s clear that this initiative is well-prepared.

By the 2025 Digital Financial Forum, the three parties had already collaborated on a pilot—airdropping 100 USDC to each participant for use at local merchants. This is no longer just talk; it’s operational, laying a foundation for national-level promotion.

According to the plan, government agencies will take the lead in pilot stablecoin payments, financial institutions will integrate tokenization tools, and nationwide digital financial education will be rolled out. The goal is straightforward: to enable everyone to enjoy the benefits of the financial future.

Ultimately, Bermuda aims to upgrade from a traditional "offshore financial center" to an "on-chain financial center." To circulate economic value locally and establish a more inclusive, competitive, and resilient economic system. From a sovereign state perspective, this sets a benchmark for the development of global digital finance, with significant experimental value.