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19 Jan 2026, 22:35

Bermuda Bets on ‘Fully On-chain’ Economy in Coinbase, Circle Stablecoin Push

Bermuda is moving to place blockchain infrastructure at the center of its national economy, unveiling plans to build what officials describe as a “fully on-chain” financial system through partnerships with cryptocurrency exchange Coinbase and stablecoin issuer Circle. It was unveiled on Monday at the World Economic Forum Annual Meeting in Davos , when executives of both companies announced a model, with Bermu da Premier David Burt attending to detail a model that would integrate digital assets into daily payments, financial services, and governmental functions. We’re bringing an entire country onchain. Bermuda is building the world’s first fully onchain national economy, with support from Coinbase and @Circle . pic.twitter.com/fFL1foSFHu — Coinbase (@coinbase) January 19, 2026 In the case of Bermuda, which is a small island economy comprising about 65,000 residents, the push is a long-standing struggle with conventional financial rails. Like most of the Caribbean jurisdictions, merchants and institutions are frequently charged high fees, have little access to onshore banking partners, and have slow settlement times as a result of de-risking by global banks. The government reports that such frictions have been a burden on the competitiveness and margins, especially for small and medium-sized businesses. The proposed on-chain framework is intended to bypass some of those constraints by relying on dollar-denominated stablecoins and blockchain-based settlement instead of correspondent banking networks. Bermuda Pushes USDC Into Daily Commerce With Coinbase-Backed Pilot Under the partnership, Bermuda will work with Circle’s USDC stablecoin and Coinbase’s Base infrastructure to pilot stablecoin-based payments across government agencies, financial institutions, and local businesses. The first phase will focus on payments, tokenization tools for financial institutions, and nationwide digital literacy programs designed to help residents understand and safely use digital finance products. Burt said the goal is to create opportunity and ensure Bermudians benefit directly from changes in the global financial system. We’re taking Bermuda’s economy onchain @BermudaPremier @jerallaire https://t.co/lDqFUIb9qe pic.twitter.com/QGLzaI5VNw — Brian Armstrong (@brian_armstrong) January 19, 2026 The announcement builds on groundwork laid years earlier when Bermuda introduced the Digital Asset Business Act in 2018, overseen by the Bermuda Monetary Authority. Since then, more than 40 digital asset firms have been licensed or admitted into regulatory sandboxes overseen by the Bermuda Monetary Authority. Coinbase and Circle were among the earliest global firms approved under the regime, and Coinbase currently operates a derivatives platform from Bermuda for non-U.S. users. Momentum picked up further in 2025 at the Bermuda Digital Finance Forum , where the government, Coinbase, and Circle tested real-world adoption through an on-chain USDC airdrop. Attendees received 100 USDC, which could be spent with newly onboarded local merchants. The government noted that the experiment led to more Bermudian businesses accepting digital payments and deeper engagement from local financial institutions. Officials say those efforts will expand at the Bermuda Digital Finance Forum 2026, scheduled for May, with broader business participation and a larger consumer stimulus component. Bermuda Frames USDC as a Commerce Upgrade USDC is a fundamental component of the strategy, as it is fully pegged to dollar-based reserves, and merchants can take payments through fast and low-cost methods without the risk of changes in the prices of cryptocurrencies such as Bitcoin. Some Bermudian companies are already paying in USDC, and the government believes it is a means to have the modernized deal and remain tied to the U.S. dollar. The project will be voluntary, and no resident or business is obliged to use on-chain tools, and the collaboration with Coinbase and Circle is not exclusive. Instead, the strategy is framed as an incremental transition, with education programs and incentives designed to encourage uptake over time. Officials see on-chain infrastructure as a way to strengthen that position while opening access to global capital markets for local firms. In the country, there is no income or capital gains tax on digital assets, and the government has taken a compliance-first approach that emphasizes licensing, audits, and reserve requirements for stablecoin issuers. The post Bermuda Bets on ‘Fully On-chain’ Economy in Coinbase, Circle Stablecoin Push appeared first on Cryptonews .

19 Jan 2026, 21:55

South Korea sentences crypto operators in USDT scam

South Korean authorities imprisoned two fraudsters for laundering $1 million in USDT from a voice phishing operation. The leader was sentenced to five years in prison, while his employee was sentenced to two years and eight months. The 41-year-old leader, along with his employee, operated an illegal crypto exchange. They laundered $1 million using Tether’s USDT to support a voice phishing group. Funds vanished within an hour South Korean prosecutors stated the criminals used Telegram to contact the exchange chief for three months. The criminals pretended to be police officers or relatives to trick victims into sending money to accounts managed by the illegal exchange. The exchange received the money from local banks after the victims sent funds to these accounts. Then the employees converted the deposited fiat currency for USDT . The funds moved fast from cheques, to cash deposited to the sketchy exchange, and finally to Tether coins. A prosecutor said that regulators and banks could not freeze victims’ accounts. There was not enough time to recover the funds after the victims reported the scams to the police. Other prosecutors informed the court that the voice phishing operation was located abroad, but they did not reveal the exact location. They told the court the process was so fast that the money disappeared within one hour. Presiding Judge Lee Young-cheol said the court considered that the defendants did not try to repair the victims’ severe harm, reported Yeongnam Ilbo. The judge described the crimes as heinous and said the defendants made it nearly impossible to recover the lost money. The leader and his employee are facing charges under the Special Act on the Prevention of Damage and Refund of Damage from Telecommunications Financial Fraud. South Korean officials said they could not determine the number of victims who lost money to the voice phishing fraud. South Korean officials warn of rising stablecoin fraud The adoption of cryptocurrencies is accelerating in South Korea , but criminals are increasingly using them to scam people, too. Regulators reported a 54% increase in suspicious crypto transactions last year compared to the previous year. South Korean ministers are urging quick government action to prevent criminals from exploiting stablecoins like USDT and USDC. In September, lawmaker Jin Sung-joon said stablecoins are increasingly likely to be misused in foreign exchange crimes like illegal currency exchange. “We need a coordinated, proactive strategy encompassing law enforcement authorities such as KoFIU and the Korea Customs Service, in tracking, identifying and prosecuting criminal funds,” said the lawmaker. He added, “More policy measures should be outlined to prevent illegal, unauthorized remittances and tackle financial crimes involving crypto assets.” Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .

19 Jan 2026, 21:40

Coinbase CEO leverages Davos 2026 to speak to world leaders on crypto adoption

Coinbase Chief Executive Officer Brian Armstrong has outlined three priorities for his visit to the 2026 World Economic Forum (WEF) being held at Davos, Switzerland. Armstrong stated that he will be engaging world leaders on economic freedom and cryptocurrency adoption, advancing market structure legislation, and promoting tokenization to democratize capital market access. “I’m talking to different world leaders about economic freedom and how crypto can update their financial system,” Armstrong said in a video posted on X , outlining that it is the first goal for them this week. This year’s edition of the WEF is themed “ A Spirit of Dialogue ,” and from Armstrong’s write-up and video, it seems he will be doing a lot of dialogue to advocate for what he calls the future of finance, which he says is here, and this time it’s built for the people. Armstrong’s takeaways from Davos 2025 Last year, the Coinbase chief reported that cryptocurrency and artificial intelligence were the most discussed topics at Davos apart from President Donald Trump himself. Armstrong said nearly every conversation with major market leaders centered on the Trump administration’s cryptocurrency plans, particularly the proposed Strategic Bitcoin Reserve, which Trump later established in March 2025 via an executive order . “President Trump is forcing everyone to up their game,” Armstrong wrote on X following the forum. “Basically every conversation I had with major market leaders was focused on what the Trump Admin planned to do on crypto – eg, on a Strategic Bitcoin Reserve – and how they can avoid being left behind.” During a panel discussion at the forum, Armstrong stated that it was the “dawn of a new day” for cryptocurrency, contrasting with what he characterized as hostility from the previous administration. “You have to remember: the last four years, we really felt like we were being attacked by this administration,” he told CNBC in Davos. Bitcoin did rise to its all-time high of over $126,198 in October 2025; however, it also crashed briefly that same month and hasn’t risen above $100,000 since November 2025. Coinbase CEO to speak with bank CEOs The second thing on Armstrong’s to-do list at Davos 2026 is to work with bank CEOs to find working legislation that works for all of them. “We’re going to continue to work on market structure legislation and meet with some of the bank CEOs to figure out how we can make this a win-win,” he stated. Given the current boom in the usage of stablecoins, jurisdictions like the United States and Hong Kong have made legislation like the GENIUS Act and Stablecoin Ordinance, respectively, and they are not alone, as more have made and are making regulations that govern stablecoins. The United States is currently working on more robust crypto legislation known as the CLARITY Act , and some of its provisions, alongside those in the GENIUS Act, are of concern for stakeholders like Armstrong and CEOs of some major banks. So, it’s no surprise that Armstrong wants to speak with them to forge a way to work together. “Stablecoins should be an opportunity for both banks and crypto companies as long as we’re all treated on a level playing field,” he said, adding that final decisions would be deferred to the Senate and the current administration. Democratizing capital markets Armstrong’s third priority focused on tokenization and its potential to expand access to investment opportunities. He cited approximately 4 billion adults globally who lack access to brokerage services and quality investments. “There’s about 4 billion adults globally that are unbrokered. They don’t have access to any kind of high quality investments,” Armstrong said. “This is the engine of wealth creation that everybody should have access to, and crypto’s gonna help make that happen.” The smartest crypto minds already read our newsletter. Want in? Join them .

19 Jan 2026, 21:16

Bermuda Targets “Fully Onchain” Economy With Circle and Coinbase

Bermuda has taken a bold step toward reshaping how a country runs its financial system. Speaking at the World Economic Forum Annual Meeting in Davos, the Government of Bermuda said it plans to become the world’s first fully onchain national economy. The initiative brings major support from Circle and Coinbase, two firms that focus on digital asset infrastructure. Bermuda aims to reduce payment friction, strengthen local commerce, and expand access to global financial tools. As the plan moves forward, it could set a model for other small economies facing similar limits from traditional banking rails. Bermuda Targets Lower-Cost Payments for Daily Business Bermuda’s economy relies on thousands of small and medium-sized businesses. However, many still face high costs from traditional payment networks. These costs often rise because major processors treat Bermuda like other island jurisdictions. Consequently, merchants pay higher fees and lose profit on every sale. Bermuda believes stablecoins can change that. With USDC, merchants can accept dollar-based payments quickly and at a lower cost. Additionally, the island already has local examples of onchain payments working in real conditions. Officials say these systems help residents transact locally while meeting modern compliance needs. Circle and Coinbase Expand the Partnership Circle and Coinbase said they will provide tools and support across the Bermudian economy. Their work will reach government agencies, banks, insurers, merchants, and consumers. Besides infrastructure, the companies also plan nationwide education and technical onboarding. Coinbase CEO Brian Armstrong described the push as a step toward open financial access. He said, “Coinbase has long believed that open financial systems can drive economic freedom.” He also added, “We are excited to support Bermuda’s transition toward an onchain economy that empowers local businesses, consumers, and institutions.” Circle CEO Jeremy Allaire also pointed to Bermuda’s role in responsible regulation. Moreover, he said the island continues to show how national-scale blockchain adoption can work. Regulation and Real-World Adoption Drive the Strategy Bermuda built its digital asset reputation early. In 2018, it introduced the Digital Asset Business Act, one of the first full frameworks. Circle and Coinbase became early license holders under that regime. Hence, Bermuda now enters this new phase with experience and regulatory structure. The partnership also builds on earlier adoption campaigns. At the Bermuda Digital Finance Forum 2025, the partners ran a USDC airdrop. Attendees received 100 USDC to spend with onboarded merchants. Significantly, more businesses began accepting digital payments after that event. Bermuda plans deeper engagement at the Bermuda Digital Finance Forum 2026, set for May 11–14. Over time, pilots in stablecoin payments and national literacy programs could support a more competitive economy.

19 Jan 2026, 20:22

Shiba Inu Price Faces Pressure as 361B SHIB Exit Exchanges

The supply of Shiba Inu on centralized exchanges continues to decline. Recent on-chain movements point to reduced immediate selling pressure despite short-term losses. The trend reflects shifting investor behavior rather than a direct price catalyst. As a result, market attention has turned to whether accumulation is replacing distribution. Shiba Inu Exchange Supply Drops Sharply Data from CryptoQuant shows that 361,380,965,000 SHIB tokens exited centralized exchanges between January 16 and Monday. According to the platform, total exchange reserves fell from 82.642 trillion SHIB on Friday to 82.28 trillion SHIB. This reduction occurred even as Shiba Inu’s price declined over the weekend. On Friday, SHIB traded near $0.00000856 while exchange balances remained elevated. By Monday, the price had retraced to around $0.00000787, yet exchange reserves continued to drop. Data shows this divergence often draws attention because declining exchange supply usually appears during periods of accumulation. CryptoQuant figures also show that Binance recorded a notable decline in SHIB reserves over the same period. The exchange’s balance dropped from 62.53 trillion tokens to 62.42 trillion. Binance holds the largest share of SHIB liquidity, making its reserve movements closely watched. What Exchange Outflows Signal for SHIB Holders The exchange outflows are a sign that investors are moving assets into self-custody wallets or third-party storage solutions. Such behavior typically aligns with longer holding strategies rather than short-term trading. As fewer tokens remain readily available on exchanges, immediate selling pressure tends to ease. This trend has reassured some Shiba Inu holders amid recent losses. At press time, SHIB trades at around $0.00000808. The token declined by 3.57% over the past 24 hours and by 5% over the past 7 days. Despite this correction, exchange supply continued to contract, suggesting that some investors chose to hold rather than sell into weakness.

19 Jan 2026, 19:55

Injective Community Approves Revolutionary Proposal to Slash INJ Token Supply

BitcoinWorld Injective Community Approves Revolutionary Proposal to Slash INJ Token Supply In a landmark decision with significant implications for its economic future, the Injective community has overwhelmingly approved a pivotal governance proposal to fundamentally alter the INJ token’s monetary policy. This move, reported by CryptoBriefing, transitions the blockchain’s native asset to a deflationary model by permanently reducing new token issuance. Consequently, the community aims to enhance long-term value accrual for stakeholders through a strengthened burn mechanism. The proposal passed with near-unanimous support, securing 99.9% of the vote and authorizing an on-chain update to the network’s inflation parameters. This strategic shift represents a major evolution in Injective’s tokenomics, building upon a history that has already seen approximately 6.85 million INJ burned since mainnet launch. Decoding the Injective INJ Token Supply Proposal The core of the approved proposal centers on a deliberate and permanent reduction in the future supply of INJ tokens. Specifically, the community voted to implement an on-chain update that alters the network’s inflation parameters. The primary goal is to cap new INJ issuance while simultaneously enhancing the protocol’s existing token burn mechanics. This dual approach directly targets the circulating supply, aiming to create a deflationary pressure over time. Furthermore, the transition marks a strategic pivot from a more inflationary emission schedule to a model designed for scarcity. Governance proposals of this magnitude are not uncommon in decentralized ecosystems, yet the near-unanimous 99.9% approval rate underscores exceptional community consensus. Historically, Injective has demonstrated a commitment to supply reduction, having already burned a substantial 6.85 million INJ tokens. This new policy institutionalizes and accelerates that precedent. The Mechanics of a Deflationary Crypto Model Understanding this decision requires a clear grasp of deflationary tokenomics within blockchain networks. A deflationary model, in contrast to an inflationary one, systematically reduces the total or circulating supply of an asset over time. Injective plans to achieve this through two interconnected mechanisms. First, the protocol will permanently limit the creation of new INJ tokens through its consensus and reward system. Second, it will amplify its existing burn mechanism, which permanently removes tokens from circulation, often through transaction fees or specific protocol activities. For comparison, other notable cryptocurrencies employ similar models. For instance, Ethereum transitioned to a deflationary stance post-Merge through its EIP-1559 fee burn, while Binance Coin (BNB) executes quarterly burns based on exchange profits. The table below illustrates key differences in approach: Protocol Deflationary Mechanism Primary Driver Injective (INJ) Parameter update to limit issuance + enhanced burn On-chain governance & protocol fees Ethereum (ETH) Fee burn (EIP-1559) Network transaction volume Binance Coin (BNB) Scheduled quarterly token burns Centralized exchange profit Therefore, Injective’s model is uniquely proactive, combining supply cap adjustments with reactive burning based on network usage. Expert Analysis on Tokenomics and Value From a tokenomics perspective, this proposal aligns with established economic principles of scarcity and value. By reducing the rate of new supply entering the market, the protocol increases the scarcity of existing tokens, all else being equal. However, experts consistently emphasize that sustainable value is not derived from scarcity alone. The long-term impact hinges critically on continued network utility and adoption. A deflationary token must fuel a growing ecosystem; otherwise, scarcity occurs in a vacuum. The strengthened burn mechanism directly ties supply reduction to network activity, creating a potential virtuous cycle. More usage leads to more fees burned, which reduces supply, potentially increasing the value of remaining tokens. This model incentivizes both usage and holding, a balance many blockchain projects strive to achieve. The 99.9% governance vote also highlights a mature, engaged community willing to make long-term structural changes, a key indicator of a project’s health in the decentralized finance (DeFi) space. Historical Context and Broader Market Impact Injective’s decision does not occur in isolation. It follows a broader industry trend where mature blockchain projects refine their economic models post-launch. The initial phase often involves inflationary token distribution to incentivize validators, developers, and users. Subsequently, as networks achieve stability, the focus frequently shifts to sustainable value capture. Injective’s reported burn of 6.85 million INJ since mainnet launch provided a proven track record, likely building community confidence for this more aggressive step. The immediate market impact of such governance decisions can vary. Typically, they signal strong, long-term-oriented management and can positively influence investor perception. However, the true test lies in the execution of the parameter updates and the subsequent effect on network security and participation. Validators and stakers must remain adequately incentivized despite lower new issuance, a challenge the proposal’s design must address. Comparatively, other layer-1 and layer-2 networks will observe the outcomes of this shift, potentially influencing future governance discussions across the crypto ecosystem. Conclusion The Injective community’s decisive vote to reduce the INJ token supply marks a critical evolution in the project’s economic framework. By transitioning to a deflationary model through capped issuance and an enhanced burn mechanism, the protocol aims to foster long-term scarcity and value alignment. This governance action, backed by a history of burning millions of INJ tokens, demonstrates a strategic commitment to sustainable tokenomics. The success of this ambitious INJ token supply policy will ultimately depend on maintaining robust network utility and security while navigating the complex balance between scarcity and incentive. The move solidifies Injective’s position as a protocol willing to adapt its core economics in pursuit of a more sustainable future for its stakeholders. FAQs Q1: What does the Injective governance proposal actually do? The proposal authorizes an on-chain update to permanently limit the issuance of new INJ tokens and strengthen the existing mechanism to burn INJ, thereby reducing the circulating supply over time. Q2: Why is a deflationary model considered significant for a cryptocurrency? A deflationary model aims to increase token scarcity by reducing supply, which, combined with steady or growing demand, can positively influence long-term value accrual for holders, according to basic economic principles. Q3: How much INJ has been burned so far? Since its mainnet launch, the Injective protocol has reportedly burned approximately 6.85 million INJ tokens prior to this new proposal being enacted. Q4: Did the community support this change? Yes, the governance proposal passed with overwhelming support, receiving 99.9% of the votes cast by the Injective community. Q5: How does this affect INJ stakers and validators? The proposal must carefully balance reduced new issuance with sufficient staking rewards to keep the network secure. The long-term design aims to make fees and burns a larger component of validator compensation, tying rewards more directly to network usage. This post Injective Community Approves Revolutionary Proposal to Slash INJ Token Supply first appeared on BitcoinWorld .