Bermuda residents can now pay their taxes in cryptocurrencies. The Bermuda government announced Wednesday that it will accept payments in USDC (USD Coin) “for taxes, fees and other government services,” according to a Circle press release.
The USD-anchored stablecoin, launched a year ago by the exchange companies Coinbase and Circle, has issued more than USD 1 billion in USDC between them. The USDC tax payment could be among the options of some 60,000 Bermuda residents.
In addition, support for other “decentralized financial protocols and services” outside the USDC is also under development, as part of a broader initiative to integrate cryptocurrencies into official government operations.
On Wednesday, Bermuda also announced that it will collaborate with the Shyft Network startup to launch a digital identity program that will benefit people who do business in the country.
On Bermuda’s pressure for USDC adoption Circle CEO Jeremy Allaire commented:
“Bermuda is focused on allowing financial services to be built and delivered using cryptocurrencies and digital assets.”
The Bermuda government launched a blockchain working group in conjunction with the Bermuda Business Development Agency (BDA) at the end of 2017. Then, it passed the ICO legislation and created a regulatory sandbox for cryptocurrency companies.
As a result of the favorable approach in the cryptocurrency industry within the country, Circle recently moved its operations from the exchange house to Bermuda.
Bermuda is not the first territory to accept payments with cryptocurrencies.
Last November, Ohio became the first state in the United States to allow the payment of taxes with bitcoin. However, a new government administration in the state withdrew from the bitcoin tax policy earlier this month, citing possible conflicts with Ohio state law.
Other national governments such as the Republic of the Marshall Islands and the People’s Republic of China are working on their own state-regulated cryptocurrencies.
“Governments around the world will have to respond to this fundamental innovation. I take my hat off to Prime Minister David Burt, who continues to show more leadership on these issues and remains well ahead of other governments around the world.”