Bermuda started accepting tax payments in USDC stablecoin


More and more countries are starting to embrace the idea of using cryptocurrencies as payment for day to day activities, products and services.
One of those countries is the Bermuda Islands which started to accept USD Coin (USDC) for tax payments, a stablecoin pegged to the U.S. dollar that was launched a year ago by crypto-based companies Coinbase and Circle.
The announcement was published by Circle, one of the well-established financial services players in the crypto space. To this day, there are over $1 billion worth of USDC coins issued between the two companies.
Surely enough, this doesn’t stop here, as this particular development seems to be part of a much wider initiative that sees the Bermuda government support “the use of USD-dollar backed stablecoins and decentralized finance protocols and services”.
Since the islands’ economy already uses a US dollar-backed currency, the Bermudian dollar, it is expected that deciding to start using the USDC stablecoin as payment for tax purposes, could only bring positive outcomes.
However, besides being able to use the USDC stablecoin to pay taxes, residents of Bermuda can also use the crypto-based digital currency to pay fees or other government services.
With this new development in place, we can assume that using digital currencies (or stablecoins in this case) for everyday payments and commercial activities brings crypto mass adoption closer to reality, or at least for some citizens in the world.
With this occasion, Circle divulged that they’ve become the world’s first firm to have received a Class F license under Bermuda’s Digital Assets Business Act (DABA) of 2018.
This license allows Circle to support a large variety of financial services developed on blockchain technology and the permission to operate a payment system developed on USDC (USD Coin).
For the moment, using crypto-based digital currencies in an official manner to pay taxes or for products and services is a phenomenon that only occurred in small nations of the world that did not actually have a strong national currency or were already using a different nation’s currency, usually the US dollar.

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