In an astonishing move, the government in Bermuda have said they will accept the USDC stablecoin for tax payments, according to Ciricle Blog.

This comes as part of a broader initiative from the government of Bermuda aimed at supporting the use of USD-dollar backed stablecoins and decentralized finance protocols and services.

This is a massive deal for the Circle and Coinbase-backed CENTRE Consortium, the creator of USDC.

Central banks and governments around the world have said that stablecoins could destabilize the market and it seems that may already be happening. It is hard to work out the transition mechanism in regards to how this will affect fiat USD liquidity but it is progressive to say the least. If the government cashes out of USDC into traditional fiat USD then I can't really see this as being a problem but if they decide to hold reserves then the future for the project and indeed the dollar is unclear.

Earlier in the year, Circle became the first company in the world to receive a Class F license under their highly progressive Digital Assets Business Act. This enabled Circle to make products and operations in Bermuda that support a broad range of financial services built entirely on crypto and digital assets.

If more governments follow suit I can see there being more issues with regulation and approval around the world. This is a bold move from Bermuda and only time will tell how it pans out.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Analysis: BTC/USD bounces off $9,400 support after rejection at $9,700

The cryptocurrency market is in the green on Monday, during the Asian session. The largest cryptocurrency by market capitalization, Bitcoin is trading 1% higher on the day. BTC/USD opened the session at $9,446 and ...

More Bitcoin News

XRP/USD drops below $0.2000 after a failure at $0.2030

XRP/USD tested the intraday high at $0.2031, but the strong resistance located around this area discouraged the short-term bulls and pushed XRP/USD below $0.2000 by press time.

More Ripple News

Ethereum Price Analysis: ETH/USD consolidates weekly gains near $240

Ethereum (ETH/USD) surged higher on Saturday and touched its highest level since early March at $247 before closing the day with a daily gain of 10% at $243. The pair, however, has struggled to preserve its momentum ...

More Ethereum News

ADA/USD breakout from trendline support draws nearer to $0.1

Cardano continues to be one of the most active cryptocurrencies among the top 100. ADA/USD led crypto recovery last week to the extent of testing the critical $0.08. Although there was a brief break ...

More Cardano News


Bitcoin Weekly Forecast: BTC/USD bulls fight for every inch of the ground on their way to $10,000

After a sharp sell-off at the beginning of the week, BTC/USD climbed back above $9,000 and made its way above another important resistance $9,300.

Read the weekly forecast