The
global financial services company Circle announced that Bermuda had become the
first government to accept its stable USD Coin (USDC) currency for tax
payments.
Part of
a broader government initiative to adopt stable currencies
According
to a press release shared with Cointelegraph on October 16, this development is
part of a broader initiative, which believes that the Bermuda government
supports "the use of stable dollar-backed currencies and decentralized
financial protocols and services."
Circle
co-founder and CEO Jeremy Allaire said:
The Prime Minister of Bermuda made a more general announcement today about adopting stable currencies as the future of the financial system, with a focus on innovations in financial technology that can offer value not only to Bermudians, but also globally to through the company's license under its Digital Asset Business Law.
Allaire
also explained that Bermuda's economy is already dependent on a currency backed
by the United States dollar, namely the Bermuda dollar. Because of this, he
believes "it is natural that both adopt stable USD-backed currencies for their
own government services."
He also
states that this Bermuda initiative emphasizes that the world is on its way to
the widespread acceptance of stable currencies for daily payments and commerce.
A
comprehensive regulatory framework for cryptocurrencies
Circle
also announced that the company received a "Class F" license under
the Bermuda Digital Asset Business Act (DABA) of 2018. The company
claims that this license makes it the first major cryptocurrency exchange and
service wallet in receiving such permission. Allaire commented:
Through DABA, Bermuda is one of the first countries in the world to create a comprehensive regulatory framework for digital currency and products and services based on digital assets, including licensing to companies operating payment systems that use currencies stable. It will be interesting to see how other governments will respond to this fundamental innovation.
SOURCE: Cointelegraph
