Global financial services company Circle announced that Bermuda became the first government to accept its stablecoin USD Coin (USDC) for tax payments.
Part of a broader government initiative to embrace stablecoins
According to a press release shared with Cointelegraph on Oct. 16, this development is part of a broader initiative, which sees the Bermuda government support “the use of USD-dollar backed stablecoins and decentralized finance protocols and services.”
Circle co-founder and CEO Jeremy Allaire said:
Allaire also explained that Bermuda’s economy already relies on a United States dollar-backed currency, namely the Bermudian dollar. Because of this, he believes that “it’s natural that they would both embrace USD-backed stablecoins for their own government services.”
He also claims that this Bermuda’s initiative highlights that the world is on its path towards mainstream acceptance of stablecoins for everyday payments and commerce.
A comprehensive regulatory crypto framework
Circle also announced that the firm has been awarded a “Class F” license under Bermuda’s Digital Assets Business Act (DABA) of 2018. The company claims that this license makes the company the first major cryptocurrency exchange and wallet service ever to receive such a permit. Allaire commented:
USDC was launched about a year ago by Circle in partnership with major cryptocurrency exchange Coinbase. As Coinworld360 recently reported, Coinbase now allows holders of USDC to earn a 1.25% annual percentage yield.