'The Kingdom of Happiness' bets on Bitcoin.

Bhutan is betting the country's future on Bitcoin. Photo: Euronews .

The Bhutanese government has quietly launched a state-led Bitcoin mining program since 2019, without publicly announcing it to the people. Bhutan's advantage lies in its vast hydroelectric system in the Himalayas, which provides ideal conditions for energy-intensive mining operations.

At its peak, Bhutan held approximately 13,000 BTC. Currently, the country is estimated to have around 5,400 Bitcoin, ranking 7th in the world in terms of reserves. According to media reports, Bhutan has sold $42.5 million worth of Bitcoin since the beginning of the year.

At the heart of the new economic strategy is the Gelephu Mindfulness City special administrative region, a project initiated by King Jigme Khesar Namgyel Wangchuck, located in southern Bhutan, near the border with India.

This is no ordinary city. Gelephu adopts Singapore's Companies Act as its legal framework. An independent judicial system will be established and operate with legal autonomy for 20 years. The goal is to attract international businesses and investors.

At the AI Impact Summit in India in February, Prime Minister Tshering Tobgay stated that Bhutan would utilize "clean, green renewable energy sources in Gelephu City to achieve shared AI goals."

In this scheme, Bitcoin will be integrated into the city's payment system. Furthermore, it is considered a strategic reserve asset to hedge against inflation and currency devaluation.

The project has received strong support from India. To expedite progress, two railway lines are being planned between the two countries, including a line connecting Assam with Gelephu, with a total cost of approximately $434 million fully funded by India. These will be the first railway lines in Bhutan's history.

"Attracting skilled Bhutanese from abroad would be easier if we focused on the service sector rather than manufacturing," said Aditya Gowdara Shivamurthy from the Observer Research Foundation.

Using readily available natural resources to generate new financial resources, attract talent, and retain young people is a strategic move for Bhutan. However, reliance on Bitcoin also carries significant risks. A sharp drop in the cryptocurrency market could directly impact the national budget, leaving Bhutan vulnerable.

Source: https://znews.vn/vuong-quoc-hanh-phuc-dat-cuoc-vao-bitcoin-post1634306.html