The government of Bermuda is now accepting USD Coin (USDC) for taxes. This would make the Bermuda government the first in the world to accept the USDC stablecoin for taxes. The information was released by Circle, the company behind USDC, a few hours ago.

USDC To Pay For Taxes

Bermuda citizens will now be able to pay for their taxes using the USDC stablecoin. As per the press release, the initiative aims at supporting the use of USD-dollar backed stablecoins and decentralized finance protocols.

Jeremy Allaire, the CEO and co-founder of Circle said that Bermuda’s economy relies on a U.S. dollar-backed currency, the Bermudian dollar. Thus, Allaire mentioned it could be a natural step to move forward and start embracing USD-backed stablecoins for their own governments and services.

The CEO of Circle commented about it:

“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.”

In the future, many other countries could embrace cryptocurrencies. This could be one of the first examples that show how it is possible to start using stablecoins in different areas, improve services and allow taxpayers to have an easier payment process.

In addition to it, Circle informed it was awarded a Class F license under Bermuda’s Digital Assets Business Act (DABA).

In this way, the firm will be the first major crypto exchange in the world that receives such a permit.

Moreover, Bermuda is one of the first countries in the world that created a comprehensive regulatory framework for digital currency and digital assets. Other governments in the future could also start dealing with cryptocurrencies and other digital asset-based products and services.

Circle works side by side with the cryptocurrency exchange Coinbase that offers users the possibility to buy, sell, hold send and receive cryptocurrencies, including USDC. The exchange uses the USDC stablecoin rather than other competitors such as Tether (USDT) for users to have access to a stable cryptocurrency.

At the same time, Coinbase is allowing a small number of USDC holders to earn a 1.25% annual percentage yield on their USDC holdings. This was established in order for users to move into this stablecoin that has been growing during the last months since it was released to the market last year.