Bhutan’s state owned investment company has claimed that it has invested in 13011 bitcoins, citing government investments in cryptocurrencies.
The kingdom’s rulingdom’s decision is in line with the ongoing trend that sees most governments who are looking forward to investing in digital currencies.
The Bitcoin investment by Bhutan may be for different reasons including; the diversification of the economy and the acquisition of additional economic sovereignty.
The Kingdom of Bhutan has changed its stance within the international crypto market through the acquisition of a large interest in Bitcoin. The Bhutanese government through its state owned investment arm known as DHI claims to own 13,011 bitcoins which are equivalent to about $780 million.
https://twitter.com/SimplyBitcoinTV/status/1835715666332045645
This development places the small Himalayan nation in the center of the global map like other governments of the world, even though it is starting to contemplate cryptocurrency as part of its financial strategy.
A Strategic Step in a Dynamic Industry
The country has put much emphasis on embracing new technologies like cryptocurrencies, especially Bitcoin. This decision suggests that there is more faith in digital currencies as a long-term investment. The government also invests in other digital currencies like Ethereum, Binance Coin, Polygon, among others, but the major investment is in Bitcoins.
The total amount invested in cryptocurrencies is $780 million, Bitcoin being worth $49 million. This shows that the country is ready to embrace the change that is brought about by cryptocurrencies across the globe.
Assessing Bhutan'sBhutan's Bitcoin Investment
That is why Bhutan's Bhutan's amassing of Bitcoin may have even more significant strategic consequences. The main benefit is that bitcoin is a decentralized form of currency, and should institutional investors decide to buy bitcoins in bulk, it can represent a form of portfolio diversification for countries. This makes many people use Bitcoin to hedge against economic factors such as inflation and volatility in interest rates, which are experienced in traditional financial systems.
Further, the decision may serve the purpose of the change Bhutan wants to shift from the current economy to the digital and innovation economy. It can also be seen as a part of the policy of making the country's economy more closely dependent on the world economy and more protected during fluctuations.The tiny South Asian nation of Bhutan recently entered the Bitcoin market with over 13,000 bitcoins. This indicates that the world is gradually adopting digital currencies.
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