Bermuda Now Accepts Tax Payments with USD Coin

USD coin

The Government of Bermuda is now accepting tax payments in form of USD coin (USDC). The FinTech company Circle announced in a recent press release that Bermuda residents will now be able to pay their taxes in the country with Circle’s stablecoin USDC.

The press release states that this development is part of a broader strategy to support the use of USD-backed stablecoins and decentralized finance.

The CEO of Circle Jeremy Allaire commented:

“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.”

An important fact to understand why Bermuda is accepting the USD coin so readily is that the island nation is already relying on a USD-back currency, the Bermudian Dollar.

A natural step for the growing adoption of cryptocurrencies

Governments accepting cryptocurrencies for tax payments is another clear sign of the growing acceptance of cryptocurrencies around the globe. Afterall, if there was not enough demand for the ability to pay taxes with crypto no government would go out its way and create a new way to pay taxes. For Bermuda this likely means that the number of business accepting and working with cryptocurrencies and of course the number of traders has grown to the point that accepting cryptocurrencies has become a viable option for the Bermudian tax authorities.

Another reason could of course be to make the country more attractive to crypto traders and crypto businesses alike. The combination of low taxes and the elimination of the need to convert crypto back to traditional FIAT might attract more businesses dealing mostly or exclusively in crypto.

What do you think? Is paying taxes with crypto a move in the right direction by governments around the world?

More about Circle’s USD coin

The USD coin was launched by Circle back in 2018 and based on the ERC-20 standard of Ethereum and the CENTER technology stack that was jointly developed by Circle and Coinbase. As a stablecoin, USDC is pegged to the US Dollar in value and therefore is not affected by the general volatility of the crypto market. A distinguishing feature of the USD Coin is the fact that its USD reserves are audited monthly by the auditor Grant Thornton LLC to give USDC users the confidence that the stablecoin is always 100% backed by real US Dollars.

USDC is one of the few stablecoins with a substantial market capitalization in comparison to the market dominator Tether. While Tether clocks in at the top with over four billion USD in market capitalization, USDC manages to reach a respectable 475 million USD.

USD coin can be traded on most major exchanges such as Binance with decent liquidity and trading pair options, which makes it an interesting alternative to the often-criticized Tether stablecoin. Especially if you are looking for a stablecoin which is 100% backed, independently audited and not bound to one or two exchanges.

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