Bhutan Investing Millions in Bitcoin and Other Cryptocurrencies
Bhutan, a South Asian country recognized for its conservative financial practices and prioritization of Gross National Happiness, has garnered attention for its foray into the world of cryptocurrency.
The Bhutanese government has invested in multiple cryptocurrencies, such as Ethereum, Dogecoin, and Bitcoin, with the total amount of investment undisclosed. ‘
Reaction to this Move
Bhutan’s decision to invest in cryptocurrencies is being seen as a prudent move to expand its economic horizons and reduce its reliance on traditional sources of income. The country’s economy heavily depends on hydropower exports, which account for more than half of its total exports.
The cryptocurrency industry has welcomed this move, considering it as a sign of a growing trend toward the adoption of digital currencies. While Bhutan is not the first nation to invest in cryptocurrencies, it is one of the few countries that are doing so on a large scale. This move is being perceived by experts as a strategic step towards diversifying Bhutan’s economy and reducing its dependence on a single source of income.
The government has defended its investment decision by highlighting the measures it has taken to mitigate any risks around crypto. One of the notable steps taken by the government is the engagement of a team of crypto experts to manage its cryptocurrency investments. Additionally, the government has implemented rigorous risk management protocols to ensure the safety of its investments.
The Secrecy of this Move
Forbes has conducted a comprehensive analysis of the bankruptcy documents filed by BlockFi and Celsius, leading to the discovery of Bhutan’s covert cryptocurrency portfolio.
This portfolio was obtained through Druk Holding & Investments (DHI), the nation’s sovereign investment arm with assets totaling $2.9 billion. Despite DHI’s investment activities never being publicly disclosed, the portfolio’s contents raise significant questions about Bhutan’s involvement in the crypto economy and whether these holdings support their modernization initiatives.
BhutanIn February 2022, DHI requested a $30 million USDC loan from BlockFi, which unfortunately defaulted on the repayment of the loan. Consequently, BlockFi’s legal team served a complaint to DHI last month. Despite BlockFi’s liquidation of 1,888 bitcoin as collateral, an outstanding balance of $820,000 still remains unpaid.