Bermuda residents can now pay their tax through Cryptocurrency. Yes! The Bermuda government announced that it will accept payments in USDC for taxes, fees, and other government services. <a href="https://www.cryptoknowmics.com/crypto/coinbase-to-pay-its-users-an-interest-of-125-ayp-on-their-usdc-stablecoin-holdings/">USDC</a> is a cryptocurrency with a stable price making it a stable coin. 1USDC is for 1 US$ which makes the value stable. Bermuda will support USDC as acceptable tax payments for around 60,000 residents.

USDC was launched about a year ago by Circle in partnership with major <a href="https://poloniex.com/">cryptocurrency exchange</a> Coinbase. CEO of Circle, Jeremy Allaire said, “Bermuda’s Premier made a broader announcement today about embracing stable coins as the future of the financial system. With a focus on innovations in fintech that can deliver value not just for Bermudians, but also globally via company's licensed under their Digital Asset Business Act.”
<h2>Mainstreaming the Future</h2>
Allaire explained more that, the economy of Bermuda relies on a USD backed currency named Bermudian dollar. That’s why it's natural that they would also embrace the USD backed stable coin for their own government services. This initiative of Bermuda focuses on the road towards the mainstream use of stable coins for regular payments.

The government of Bermuda launched a blockchain Taskforce in association with BDA (<a href="https://www.gov.bm/department/bermuda-business-development-agency">Bermuda Development Agency</a>) in 2017. It went on to pass legislation on ICO (Initial Coin Offering) and created a regulatory virtual space for Cryptocurrency companies.
<h2>Benefits of the launching company: Circle</h2>
As a result of the favorable focus on the cryptocurrency market within Bermuda, Circle moved its operation here in July. Circle also announced that they received the award of “Class F” license under Bermuda’s DBA Act. Circle claims that this license makes them the first major cryptocurrency exchange and wallet service ever to receive a permit like that.

Allaire also stated, “Through the DABA, Bermuda is one of the first countries in the world to create a comprehensive regulatory framework for digital currency and digital asset-based products and services, including licensing of firms operating payment systems using stable coins. It will be interesting to see how other governments will respond to this fundamental innovation.”

Though Bermuda isn’t the first municipality to accept cryptocurrency for payments. Last year Ohio became the first state in the US to allow Bitcoin for tax payments. Notably, other national governments like the Republic of the Marshall Islands and China are also working on their own state-regulated cryptocurrencies.

Bermuda became first government to accept its stablecoin USDC for tax payments

Debarati is a finance MBA who is a keen observer of the current crypto currency market. She likes to read and write about the game changer and industry transforming news of the market.

Bermuda became first government to accept its stablecoin USDC for tax payments

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