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Bermuda became the first government to accept digital currency payments

Oct 17, 2019

This week the Bermuda Government announced that the country is ready to accept digital currency for government taxes, services, and fees payments. Bermuda thereby became the first government providing such an opportunity. This means that around 60,000 residents of the island will be able to pay their taxes using the cryptocurrency.

For government services payments, Bermuda will accept USD-dollar backed stablecoins (USD Coins) that are licensed by the Bermuda Monetary Authority.This cryptocurrency is the second most popular and the fastest-growing stablecoin in the world. USD Coins are backed 1:1 with US dollars since these are fully collateralized US dollar stablecoins.

This summer Bermuda issued a full license to a fintech company Circle. Under the Bermuda Digital Asset Act, the payments technology company gained permission to operate a payment system based on USD Coins. In consortium with the creator of USD-dollar backed stablecoins Coinbase, Circle will work on enhancing the inclusivity of the global financial system. These companies strive to establish a network and standard for the adoption of fiat stablecoins.

The government of Bermuda believes that such a solution will benefit the financial system as the use of digital technology can increase the accessibility and lower the cost of financial services. By building the technically advanced financial system, Bermuda attracts more and more financial services providers interested in licensing under the Bermuda Digital Business Act.

The Prime Minister welcomes all enthusiasts who are eager to contribute to the future of open financing and development of innovative technologies to come to Bermuda. He confirmed that there already are many players who are willing to promote the present initiative and work closely with Bermuda. Indeed, owing to revolutionary technology, Bermuda became the place where foreign regulators, legislators, and companies come together to understand the benefits and learn how the solution works.

No doubts that this is a milestone for the crypto industry and it is entirely possible that pretty soon such solutions will encompass the whole world.

Please follow the LINK to learn more about the crypto licensing in Bermuda offered by OFFSHORELICENSE.

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