What to know:
- Bhutan, a small country in South Asia that owns over $1.1b in Bitcoin, on Wednesday announced that one of its cities adopted a crypto reserve strategy.
- This could help the country attract foreign capital and strengthen its economy which is at risk of declining as the country’s fiscal deficit is expected to widen.
- The move could set an example for other countries that could use available renewable energy to mine bitcoin and adopt a crypto reserve strategy.
Bhutan, a small country in South Asia, is making big waves in the crypto world.
A small nation with about 770,000 inhabitants, sandwiched between India, China, and Nepal, has gained attention due to a city within its borders adopting a strategy to hold cryptocurrencies as reserves. Among the digital assets they’ve chosen are bitcoin (BTC), ethereum (ETH), and Binance’s BNB token (BNB).
Previously, El Salvador included bitcoin as a component of its central bank’s foreign reserves, and other nations such as the United States are contemplating following suit to bolster their existing strong economies.
However, Bhutan could serve as a model for smaller nations, by incorporating cryptocurrencies into their national financial strategies. This move could potentially bring about a substantial economic boost.
Phillip Shoemaker, executive director of Identity.com, stated that they are planning to demonstrate the potential in the digital asset sector by attracting foreign firms and leveraging the increasing global fascination with cryptocurrencies as a whole. This is done through bringing these companies onboard to help showcase what can be achieved,” said Phillip Shoemaker.
As a crypto investor, I believe this action could spark similar responses from governments globally, particularly in nations vulnerable to foreign exchange fluctuations and geopolitical instability. In simpler terms, it might set off a chain reaction among smaller countries.
As per a World Bank report released in May, while Bhutan’s economy is generally strong, there are potential threats ahead due to the anticipated widening of its budget gap. To foster continued economic expansion, the report advises that Bhutan should encourage increased foreign investment.
Bhutan took notice and responded by establishing Gelephu Mindfulness City, a location embracing cryptocurrency as it pursues objectives centered on “awareness, sustainability, and progress.
Shoemaker stated that the establishment of this special economic zone is particularly effective in drawing in foreign investments. The amassing of digital assets within it, he suggests, could prove very appealing on a global scale.
As an analyst, I find myself impressed by Bhutan’s strategic positioning. With a technically viable hydropower potential estimated at approximately 24,000 megawatts, and having harnessed merely 7% of this capacity thus far, the country presents a compelling case for future development in renewable energy.
Shoemaker stated, “Given that it primarily derives its electricity from hydropower sources, it’s logical for them to emphasize the mining side of their operations as well.
Mining Bitcoins demands a significant amount of energy, raising worries about the potential harm to our environment from cryptocurrency mining. Yet, the solution lies in utilizing hydroelectric power since it’s highly cost-effective and minimizes the carbon footprint of miners.
Since April 2019, the nation has been leveraging its substantial hydropower resources for Bitcoin mining, as reported by Forbes. Currently, it possesses over 11,000 Bitcoins, valued approximately $1.1 billion based on Arkham’s statistics. This places Bhutan among the top five countries in terms of Bitcoin holdings within their reserves, according to BitcoinTreasuries data.
Jagdeep Sidhu, a Core Developer at Syscoin and President of the Syscoin Foundation, stated that Bitcoin mining is particularly useful for utilizing diverse types of renewable and unused energy. He further suggested that other governments might start to follow Bhutan’s lead as an example of establishing their own Bitcoin reserves, especially those countries rich in energy resources that could otherwise go to waste.
Read More
- SUI PREDICTION. SUI cryptocurrency
- „People who loved Dishonored and Prey are going to feel very at home.” Arkane veteran sparks appetite for new, untitled RPG
- LDO PREDICTION. LDO cryptocurrency
- Destiny 2: A Closer Look at the Proposed In-Game Mailbox System
- Clash Royale Deck Discussion: Strategies and Sentiments from the Community
- Jennifer Love Hewitt Made a Christmas Movie to Help Process Her Grief
- ICP PREDICTION. ICP cryptocurrency
- Naughty Dog’s Intergalactic Was Inspired By Akira And Cowboy Bebop
- Critics Share Concerns Over Suicide Squad’s DLC Choices: Joker, Lawless, and Mrs. Freeze
- EUR IDR PREDICTION
2025-01-10 21:33