Bhutan continues to leverage new technologies, particularly Bitcoin and the blockchain, to boost its economy. According to multiple reports, Gelephu Mindfulness City (GMC) is ready to integrate digital assets like Bitcoin, BNB, and Ethereum into its strategic reserve.
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The Mindfulness City near Gelephu is a newly established special administrative region that will serve as the country’s economic hub and tourist attraction. Bhutan’s King Jigme Khesar Namgyel Wangchuck shared that it’s a modern city anchored on innovation, so its announcement of a Bitcoin and crypto strategic reserve isn’t surprising for many.
Bhutan Continues Its Bitcoin Strategy
Bhutan is one of the first countries to see the potential of Bitcoin and blockchain technology. This small Asian kingdom in the Himalayas started mining Bitcoin in April 2019, when the world’s top digital asset was trading at the $7k level. Druk Holdings and Investments (DHI) and Green Digital Limited (GDL) serve as the country’s investment arms.
Source: Arkham Intelligence
Thanks to an early start in Bitcoin mining and adoption, Bhutan now has sizable Bitcoin holdings. According to Bitwise Europe, Bhutan currently holds over 11,000 Bitcoins, and this number will continue to grow with Mindfulness City’s recent announcement to add more BTC and cryptos to its strategic reserve.
The same Bitwise Europe chart also indicates that the US remains the biggest sovereign holder of Bitcoin, with around 198,000 Bitcoin, and China is second on the list.
Bhutan’s Bitcoin Mining Initiative
Currently, Bhutan is developing its crypto mining facilities in a phased manner in cooperation with Bitdeer Technologies. Initially, the kingdom launched a facility with 100MW capacity and is currently operational. The government aims to start its second facility by the middle of the year, with a bigger capacity of 500MW.
Interestingly, Bhutan has devised a plan to help offset the notoriously high energy consumption associated with crypto mining. Unlike other mining companies, the Kingdom has leveraged its hydropower resources to run its facilities.
Bhutan’s 100MW mining center in Gedu runs on hydroelectric power and is environmentally friendly. The Gedu facility boasts over 30,000 crypto-mining machines and can produce three to five BTC daily.
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Bitcoin Policy Becoming More Popular
Bitcoin and cryptos are now popularly integrated into many government policies, particularly as part of a strategic asset reserve. The United States remain the industry leader, at least in its efforts to integrate Bitcoin and cryptos into its national agenda. Last year, Senator Cynthia Lummis introduced a bill allowing the government to set up a strategic reserve.
China is another country slowly adopting Bitcoin and the blockchain into its financial system. El Salvador, on the other hand, has doubled down on its efforts to add more Bitcoin into its national treasury. Still, Bhutan remains a unique case for its independent Bitcoin facility that prioritizes environment-friendly technologies.
Featured image from Pexels, chart from TradingView