Residents of Bermuda can now pay their taxes in cryptocurrency as the government now accepts USDC stablecoin.
October 15, 2019, | AtoZ Markets – Bermuda government has become the first in the world to accept tax payments in stablecoin USD Coin (USDC). The crypto company Circle made this announcement.
Bermuda embraces USDC stablecoin as the future of the financial system
According to a press release seen by AtoZMarkets, the Bermuda government will accept tax payments in USDC stablecoin. In addition, Bermudians can use USDC to pay for other government services.
As explained by Circle’s co-founder and CEO Jeremy Allaire, the Bermuda economy relies on the USD-pegged Bermuda dollar. Allaire thus believes that it’s natural that they would both embrace USD-backed stablecoins for their own government services.”
The press release also stated that the Bermuda Government will support other decentralized finance protocols and services. This development is part of a broader initiative to integrate cryptocurrencies into official government operations.
Allaire also added:
“Bermuda’s Premier made a broader announcement today about embracing stablecoins 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.”
Bermuda accepting USDC is an indication that the world is moving towards mainstream acceptance of stablecoins for everyday payments.
USDC stablecoin is backed by the U.S. dollar and was launched in September 2018 by Circle and crypto exchange Coinbase. 1USDC equals $1 which makes the value stable.
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.
Moreover, 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:
“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 stablecoins. It will be interesting to see how other governments will respond to this fundamental innovation.”
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