The Royal Government of Bhutan has transferred 650 Bitcoins totaling $74.24 million to Binance, highlighting the growth of the cryptocurrency market in the country.
Analysis of Bhutan's Bitcoin Transfers
The Bhutanese government wallet had not made any transfers for two weeks before initiating operations on June 30. The latest transaction involved 99.47 Bitcoins valued at $12.05 million, completed through the country's investment arm Druk Holding. Blockchain analytics platform Onchain Lens tracked these movements, which coincided with Bitcoin's price increase.
Bhutan's Economic Strategy in Cryptocurrencies
Bhutan's Bitcoin portfolio now constitutes approximately 40% of the country's gross domestic product. In 2023, Bhutan sold $100 million in cryptocurrency to double civil servant salaries. Prime Minister Tshering Tobgay noted that Bitcoin mining provides foreign currency reserves while utilizing surplus summer energy. Bhutan is also partnering with Bitdeer to expand its mining operations.
Global Trend Towards National Cryptocurrency Reserves
Bhutan ranks third globally among government Bitcoin holders, trailing only the United States and China. The Bhutanese approach differs from other nations with its focus on mining rather than acquisition or seizure. Experts suggest Bhutan's model could serve as a blueprint for other nations seeking to enter the digital economy.
Bhutan's transfers to Binance indicate a growing interest in cryptocurrencies and demonstrate how the country leverages its natural resources to support its national economy.
