Bhutan Plans Strategic Bitcoin Reserve in New Economic Hub

Bhutan Plans Strategic Bitcoin Reserve in New Economic Hub
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Bhutan Plans Strategic Bitcoin Reserve in New Economic Hub

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This BTC reserve will include major digital assets such as Bitcoin and Ether. It marks a significant step in the country’s engagement with the crypto world.

The move aims to boost Bhutan’s economic resilience and explore new Bitcoin mining opportunities. Let’s discover more about this important news for its Bitcoin reserve.

Gelephu to Include Multiple Cryptos in Reserves
The announcement, made on January 8, revealed that the Gelephu Special Administrative Region (SAR) intends to recognize established cryptos. This is part of its strategic reserves. Unlike other regions that focus solely on Bitcoin, GMC plans to include a variety of digital assets to ensure it has ample liquidity. The city’s administration aims to include cryptocurrencies with large market capitalizations and deep liquidity, making them easy to buy and sell with minimal price fluctuations.

“GMC intends to recognize digital assets with large market capitalizations and deep liquidity,” the announcement stated. The city will focus on assets issued on more mature, secure blockchains that support transaction monitoring, further ensuring stability in its strategic reserve.

The move follows Bhutan’s established involvement in digital currencies, with Druk Holding and Investments (DHI), the commercial arm of Bhutan’s royal government, already holding significant amounts of Bitcoin and other digital assets. According to Arkham Intelligence, Bhutan currently holds 11,688 BTC, worth approximately $1.12 billion, and 656 ETH, valued at around $2.2 million. Additionally, the country holds small amounts of assets on blockchains like Polygon, BNB Chain, and Base.

Bhutan Strengthens Crypto Position with Bitcoin Investments

Forbes reports that Bhutan has been investing in Bitcoin since at least 2019, largely through its local Bitcoin mining operations. In partnership with major crypto mining firms like Bitdeer, DHI has also made investments in troubled crypto lenders such as BlockFi and Celsius, reportedly pouring millions into digital assets.

This initiative positions Bhutan as a forward-thinking player in the global crypto scene, aiming to “kill two birds with one stone” by strengthening its economy while capitalizing on the growth of digital currencies. The GMC is expected to discuss its crypto reserve plans with senior government officials and global industry leaders in March. As it looks to forge a path in the evolving world of digital finance.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.

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January 8, 2025 at 07:30AM

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