As a researcher with years of experience delving into the intricacies of global economies and digital currencies, the recent news about Bhutan moving its Bitcoin reserves to Binance has piqued my interest. Having closely followed Bhutan’s unique approach to Bitcoin mining due to its abundant renewable energy resources, I find this development quite fascinating.
It has been reported that the Government of Bhutan moved approximately 66 million U.S. dollars’ worth of Bitcoin (equivalent to around 13,000 Bitcoins) into a Binance wallet, fueling speculation that they might be planning to sell some of their holdings. The small Himalayan Kingdom is believed to possess more than 13,000 Bitcoins, valued at over 900 million U.S. dollars according to current market prices.
This week, the government holding the fourth-largest amount of Bitcoin transferred approximately 1,000 Bitcoin units to a wallet on Binance. (Binance is a popular cryptocurrency exchange platform.)
Bhutan Moves Chunk of BTC Reserve to Binance
Earlier this week, the Kingdom of Bhutan caused a stir by moving approximately 1,000 Bitcoins into a Binance deposit account, implying they might be planning to sell some of their Bitcoin holdings. This transfer was spotted by Arkham Intelligence in two distinct transactions. Interestingly, Bhutan started moving its Bitcoins after the price surpassed the $70,000 mark.
A small Asian country, boasting a GDP of merely $3 billion, has acquired approximately $900 million in Bitcoin (BTC) exclusively from Bitcoin mining operations that leverage the nation’s abundant renewable energy resources.
Earlier this year, the blockchain data analysis company Arkham Intelligence uncovered digital wallets linked to Bhutan. Notably, Bhutan’s Bitcoin holdings exceed those of nations such as El Salvador, which currently possesses approximately 5,875 Bitcoins.
Key Player in Bhutan’s Economy
The process of Bitcoin mining significantly contributes to Bhutan’s economy because its Bitcoin holdings account for almost 30% of the nation’s GDP. All of Bhutan’s reserves have been amassed through government-run mining operations managed by Druk Holdings. In 2023, Druk Holdings teamed up with Bitdeer Technologies Group to create entirely carbon-neutral mining operations within the country. This Singapore-based mining behemoth has played a pivotal role in Bhutan’s Bitcoin mining sector, raising more than $500 million to establish cryptocurrency mining facilities in the nation. In April 2024, Bitdeer revealed plans to increase Bhutan’s mining capacity to 600 megawatts by 2025.
Crypto Involvement Driven by Economic Necessity
Due to an urgent need for economic growth, Bhutan chose to explore cryptocurrencies. A drop in tourism over time and the impact of the COVID-19 pandemic left the country searching for alternative revenue streams. Bitcoin mining presented a chance for Bhutan to capitalize on its ample hydropower resources and potentially discover new income sources.
Bhutan’s involvement in the cryptocurrency world goes beyond just owning and mining digital assets. In fact, the central bank of Bhutan, known as the Royal Monetary Authority (RMA), has considered collaborating with Ripple to develop a Central Bank Digital Currency (CBDC). The RMA stated that such a partnership would make use of Ripple’s environmentally friendly blockchain technology to promote financial accessibility among its citizens and stimulate cashless transactions.
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2024-10-31 20:07