Bhutan’s Embrace of Bitcoin and Blockchain Technology
In a progressive move towards economic enhancement, Bhutan is capitalizing on advanced technologies like Bitcoin and blockchain to invigorate its financial landscape. Reports suggest that Gelephu Mindfulness City (GMC) is set to incorporate digital currencies such as Bitcoin, BNB, and Ethereum into its strategic reserves.
Emergence of Gelephu Mindfulness City
Gelephu Mindfulness City, a newly founded special administrative region near Gelephu, is poised to become Bhutan’s economic nucleus and a significant attraction for tourists. King Jigme Khesar Namgyel Wangchuck of Bhutan has emphasized the city’s modernity and innovation-driven foundation, making its announcement regarding a strategic reserve of Bitcoin and other cryptocurrencies a natural progression.
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Strategic Reserves in the Spotlight
In a landmark achievement for blockchain technology, Gelephu Mindfulness City has declared that it will hold BNB, BTC, and ETH as part of its strategic reserve. This move underscores the global trust in blockchain technologies, particularly the BNB Chain.
Bhutan’s Forward-Thinking Bitcoin Strategy
Bhutan stands among the pioneers in recognizing the immense potential of Bitcoin and blockchain technology. Nestled in the Himalayas, this small kingdom began its Bitcoin mining journey in April 2019, when the value of the leading digital currency was around $7,000. The nation’s investment endeavors are spearheaded by Druk Holdings and Investments (DHI) and Green Digital Limited (GDL).
According to Arkham Intelligence, Bhutan’s early involvement in Bitcoin mining has resulted in substantial Bitcoin assets. Bitwise Europe’s data reveals that Bhutan currently possesses over 11,000 Bitcoins. With the recent developments in Gelephu Mindfulness City, this number is expected to increase. Despite Bhutan’s growing reserves, the United States and China remain larger sovereign holders of Bitcoin.
Advancements in Bhutan’s Bitcoin Mining Operations
Bhutan is incrementally expanding its cryptocurrency mining facilities in collaboration with Bitdeer Technologies. The initial phase saw the establishment of a 100MW capacity facility, which is now operational. Plans are underway to launch a second, larger facility with a 500MW capacity by mid-year.
Distinctively, Bhutan’s approach to handling the high energy demand of crypto mining involves utilizing hydropower resources. This environmentally conscious strategy allows the 100MW mining center in Gedu to operate sustainably, housing over 30,000 mining machines that produce three to five Bitcoins daily.
Growing Popularity of Bitcoin in Government Policies
The integration of Bitcoin and other cryptocurrencies into governmental strategies is gaining popularity worldwide. The United States is at the forefront, with legislative efforts such as Senator Cynthia Lummis’s bill to create a strategic reserve. Meanwhile, China is gradually incorporating blockchain into its financial framework, and El Salvador is increasing its national Bitcoin reserves. Bhutan, however, distinguishes itself with an independent Bitcoin facility focused on eco-friendly technology.
As nations explore the potential of digital currencies, Bhutan’s innovative strategies highlight its commitment to technological advancement and economic resilience.
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