Bhutan Transfers $22M in Bitcoin Amid Market Downturn
The Kingdom of Bhutan, a small country in the Himalayas, has transferred $22 million in Bitcoin for treasury management purposes during the cryptocurrency market downturn. According to data from analytics firm Decrypt, analysts see this as a routine practice for the state seeking to diversify its assets.
Bhutan Expands Bitcoin Holdings
Bhutan, known for its commitment to environmentally-friendly development and carbon neutrality, started actively investing in cryptocurrencies in 2021. The country created a state-owned cryptocurrency company, Druk Holdings and Investments (DHI), to manage government investments in digital assets.
Experts say the $22 million Bitcoin transfer is related to the current over 44% drop in the cryptocurrency's price from its all-time high in November 2021. Thus, Bhutan is trying to preserve the value of its digital assets by transferring them to a market maker.
Bhutan's Active Crypto Industry Development
Bhutan has been actively developing its cryptocurrency ecosystem in recent years. The country has legalized cryptocurrencies and is collaborating extensively with blockchain companies. Moreover, Bhutan plans to launch its own central bank digital currency (CBDC) to be used alongside the traditional fiat currency, the ngultrum.
Experts believe that the $22 million Bitcoin transfer is just the beginning of Bhutan's more active participation in the cryptocurrency market. As blockchain technology develops and interest in digital assets grows, Bhutan is likely to continue expanding its cryptocurrency investments in the long term.