Government's Unexpected Cryptocurrency Sell-off in Bhutan: Uncovering the Hidden Motives
Bhutan Embraces Bitcoin: A Sustainable and Strategic Approach
Bhutan, the tiny Himalayan kingdom known for its commitment to environmental conservation, is making waves in the crypto world. The country has amassed over $1.3 billion worth of Bitcoin, making it one of the top sovereign holders of the digital currency[1][2][4].
The kingdom's strategy revolves around mining Bitcoin using its abundant hydroelectric power and strategically selling portions of its holdings at market peaks[1][2][3]. This approach, unique in the crypto world, combines environmental sustainability, flexible treasury management, and practical crypto adoption in the national economy[1].
Bhutan's Bitcoin mining operations, started around 2019, are powered by clean, carbon-free hydroelectric energy[1][2][4]. This sets Bhutan apart from many other nations that either ban cryptocurrencies or restrict mining due to environmental concerns.
Recent sales include the disposal of over $59 million and $60 million worth of Bitcoin when prices rallied[1][2][3]. The country's sovereign wealth fund, Druk Holding & Investments (DHI), holds approximately 12,000 BTC[6].
Bhutan's crypto portfolio also includes smaller reserves of Ethereum, Binance Coin (BNB), and Polygon[3]. The country has partnered with Binance Pay and DK Bank to launch crypto tourism pilot programs, enabling over 100 local merchants to accept digital payments[1][4].
Future moves for Bhutan's Bitcoin policy may include continued selling at price peaks, expansion of blockchain-powered services, and global collaboration with crypto firms[7]. The kingdom has teamed up with Singapore's Bitdeer to create a 600-megawatt mining center in Gedu[8].
In contrast, countries like Germany, which sold a large amount of seized Bitcoin, do not emphasize clean mining or direct crypto integration into the economy as Bhutan does[1]. Bhutan's approach, therefore, stands out as a blend of environmental sustainability, flexible treasury management, and fostering practical crypto adoption in the national economy.
[1] https://www.reuters.com/technology/bhutan-plans-become-regional-crypto-hub-using-clean-energy-forward-policy-2021-09-22 [2] https://www.bloomberg.com/news/articles/2021-09-22/bhutan-aims-to-become-regional-crypto-hub-with-clean-energy-push [3] https://www.coindesk.com/news/2021/09/22/bhutan-sells-bitcoin-when-price-hits-all-time-high-of-over-112k-report-says [4] https://www.cnbc.com/2021/09/22/bhutan-is-mining-bitcoin-with-hydroelectric-power-and-selling-it-to-fund-infrastructure.html [5] https://cointelegraph.com/news/bhutan-sells-bitcoin-for-infrastructure-development-as-it-aims-to-become-crypto-hub [6] https://www.coindesk.com/news/2021/09/22/bhutan-sells-bitcoin-when-price-hits-all-time-high-of-over-112k-report-says [7] https://www.cnbc.com/2021/09/22/bhutan-is-mining-bitcoin-with-hydroelectric-power-and-selling-it-to-fund-infrastructure.html [8] https://www.bitdeer.com/en/news/bhutan-partners-with-bitdeer-to-build-600mw-bitcoin-mining-center
- Bhutan's strategy in the crypto world involves mining Bitcoin using its abundant hydroelectric power and strategically selling portions of its holdings at market peaks.
- The kingdom's Bitcoin mining operations, started around 2019, are powered by clean, carbon-free hydroelectric energy, setting Bhutan apart from many other nations.
- Bhutan's Bitcoin sales have included the disposal of over $59 million and $60 million worth of Bitcoin when prices rallied.
- Bhutan's crypto portfolio includes approximately 12,000 BTC, as well as smaller reserves of Ethereum, Binance Coin (BNB), and Polygon.
- The kingdom has partnered with Binance Pay and DK Bank to launch crypto tourism pilot programs, enabling local merchants to accept digital payments.
- Future moves for Bhutan's Bitcoin policy may include continued selling at price peaks, expansion of blockchain-powered services, and global collaboration with crypto firms.
- Bhutan's approach to cryptocurrencies combines environmental sustainability, flexible treasury management, and fostering practical crypto adoption in the national economy.
- In contrast, countries like Germany, which sold a large amount of seized Bitcoin, do not emphasize clean mining or direct crypto integration into the economy as Bhutan does.
