The small Southeast Asian Kingdom of Bhutan, famed for its mesmerizing landscapes and the measure of Gross National Happiness, is now stepping into the world of technology and innovation. Keeping abreast with the rapidly evolving digital world, Bhutan is embracing major cryptocurrencies such as Bitcoin, BNB, and Ethereum to stimulate its economic growth. Among these strategic efforts, the newly instituted Gelephu Mindfulness City (GMC) is set to include these digital currencies within its strategic reserve.
Embracing the Bitcoin Revolution in Bhutan
Setting a precedent with its proactive attitude towards digital currencies, Bhutan initiated its tryst with Bitcoin and associated blockchain technology ahead of many. In April 2019, just when Bitcoin was floating around the $7k mark, Bhutan dived into Bitcoin mining. The task fell on the shoulders of Druk Holdings and Investments (DHI) and Green Digital Limited (GDL), the country’s investment vehicles, into the realm of cryptocurrencies.
With the benefit of being an early adopter, Bhutan now possesses substantial Bitcoin holdings. According to Bitwise Europe, Bhutan holds more than 11,000 Bitcoins in its coffers. This number is set to increase further with the recent announcement from the Gelephu Mindfulness City to incorporate additional Bitcoin and other cryptocurrencies into its strategic reserve.
Advancing with Bitcoin Mining in Bhutan
In collaboration with Bitdeer Technologies, the Bhutanese government is gradually developing its crypto mining facilities. The initial step involved launching a 100MW facility that is currently in action. The second facility, with an impressive capacity of 500MW, is scheduled to be operational by mid-year.
In a noteworthy move to mitigate the infamous high energy consumption associated with cryptocurrency mining, Bhutan has turned to its abundant hydropower resources. As a result, their mining centers, including the 100MW center in Gedu, function based on hydroelectric power and are therefore environmentally friendly. The Gedu center, with its huge array of over 30,000 crypto-mining machines, produces an average of three to five Bitcoins daily.
Adoption of Cryptocurrency Policies Worldwide
The acceptance of Bitcoin and other cryptocurrencies into government strategies, mainly as a part of the strategic asset reserve, is gaining global momentum. Despite the US leading the industry in incorporating cryptocurrencies into its national schemes, other countries are not far behind. China is gradually integrating Bitcoin and blockchain technology into its financial system, while El Salvador is intensifying efforts to include more Bitcoin in its national treasury.
Frequently Asked Questions:
What is the aim of Bhutan’s Bitcoin strategy?
Bhutan aims to leverage Bitcoin and other major cryptocurrencies to stimulate economic growth. It has substantial Bitcoin holdings and plans to increase the number through its strategic reserves.
How is Bhutan managing the energy consumption concerns associated with Bitcoin mining?
Bhutan is harnessing its hydropower resources to run its Bitcoin mining facilities, thereby offering an energy-efficient and environmentally-friendly solution to the high energy consumption associated with cryptocurrency mining.
Are other countries adopting similar Bitcoin and Cryptocurrency policies?
Yes, many countries worldwide, including the US, China, and El Salvador, are integrating Bitcoin and cryptocurrencies into their government strategies, mainly as a part of their strategic asset reserves. However, each country has its unique approach and regulatory framework.
What is the future potential of cryptocurrencies in the economic strategies of countries?
The future of cryptocurrencies in economic strategies looks promising, with increasing global acceptance as strategic assets. Their inclusion provides a more diverse and flexible economic framework, fostering resilience against traditional market trends and offering potential high-yield returns. However, the volatility and regulatory challenges associated with cryptocurrencies necessitate a comprehensive and thoughtful approach towards their integration.
