Bermuda Allowed to Pay Taxes with Cryptocurrency

Bermuda residents can now pay taxes with cryptocurrency: the Bermuda government has announced that it will accept USDC payments “for taxes, fees and other government services.” This is stated in the press release of crypto finance startup Circle.

USDC is a stablecoin pegged to the US dollar, launched a year ago by Coinbase and Circle. Thus, Bermuda is the first sovereign territory to support USDC as a means of tax payment for approximately 60,000 residents.

Moreover, support for other “decentralized finance protocols and services” is also underway as part of an initiative to integrate cryptocurrencies into official government operations, according to a press release.

Bermuda also announced that it will launch a digital identification program that will be useful for people doing business in the country. At the end of 2017, the government created a blockchain task force in conjunction with the Bermuda Business Development Agency (BDA), subsequently enacting an ICO law, and thus created a regulatory environment for crypto companies. As a result of favorable attention to the crypto industry in the country, Circle transferred its operations to Bermuda in late July.