Bhutan, the small landlocked country in the Himalayas, is looking to tap into the potential of cryptocurrencies by setting up a $500 million fund for Bitcoin (BTC) and crypto mining. While the country’s leaders have yet to release many details on the proposed fund, the move indicates a rising interest in blockchain technology in Bhutan.
For those unfamiliar with Bhutan, it is a small country with a population of around 800,000, located between China and India. Due to its remote location and lack of natural resources, the country has been relatively poor for much of its history, but it has made a name for itself in recent years as a leader in sustainability and happiness.
However, the country’s leaders are now looking to diversify its economy and create jobs through the use of blockchain technology. The proposed fund would be used to invest in BTC and crypto mining operations in the country.
One reason why Bhutan is looking to invest in Bitcoin and crypto mining is the country’s abundant supply of renewable energy. In fact, around 98% of Bhutan’s electricity comes from hydropower, which is a cheap and sustainable source of energy.
With such a large supply of renewable energy, Bhutan is well-suited to support a large-scale crypto mining operation. The country’s RTI Act 2007 states that the government has the right to use its natural resources for the benefit of its people, which means that the country can use its cheap and abundant energy to support its crypto mining industry.
Another reason why Bhutan is focusing on cryptocurrencies is the potential profitability of the market. While the cryptocurrency market can be volatile, it has also proved highly profitable for those who invest in it. In 2020, Bitcoin soared to an all-time high of $64,000, and while it has since experienced a pullback, it remains a highly valuable asset.
By investing in BTC and crypto mining operations, Bhutan could potentially earn significant profits and create jobs in the process. However, there are also risks associated with crypto mining, including the possibility of cyber attacks and market volatility.
Despite these potential risks, the country’s leaders are optimistic about the potential benefits of investing in cryptocurrencies. In a recent interview, the country’s Finance Minister, Namgay Tshering, stated that “the Royal Government of Bhutan is taking a cautious approach towards cryptocurrency and blockchain technology, but we are optimistic about the potential it could bring to Bhutan’s economy.”
While the proposed $500 million fund is a significant investment, it remains to be seen how the funds will be allocated and who will manage them. Additionally, the country’s leaders will need to carefully consider the potential risks associated with investing in cryptocurrencies and establish a strategy for managing these risks.
Despite these challenges, the move towards investing in blockchain technology reflects a growing trend in Asia. Countries such as China have been at the forefront of blockchain innovation, with the government investing heavily in blockchain technology and promoting its use in various industries.
It’s worth noting that Bhutan has been a leader in sustainability and is already taking steps towards digitalization, with the Bhutan National Bank launching a digital currency system earlier this year. By investing in cryptocurrencies, the country is setting itself up for a potential economic boom while also promoting sustainable development.
While it remains to be seen how successful Bhutan’s crypto investment will be, the move towards investing in blockchain technology is an exciting development for the small Himalayan country. It’s clear that the world is increasingly turning towards blockchain technology and cryptocurrencies, and Bhutan is just one of many countries looking to capitalize on the trend.
Bhutan’s investment arm, Druk Holding and Investments (DHI), and Nasdaq-listed company Bitdeer Technologies Group have announced their plans to seek investors for a fund worth up to $500 million. The fund will be used to develop green crypto mining in the Himalayan kingdom.
The goal of the joint venture is to set up carbon-free digital mining that taps Bhutan’s abundant hydroelectric power. By using the country’s renewable energy, the partners hope to help bring down the industry’s carbon footprint, which has become a significant concern for many investors.
The mining of cryptocurrencies, such as Bitcoin and Ethereum, requires massive amounts of electricity and has drawn criticism in recent years for its environmental impact. As Bitcoin has surged in value, the energy consumption required to mine it has increased exponentially. In fact, some estimates suggest that Bitcoin mining alone is responsible for more carbon emissions than the entire country of New Zealand.
But this partnership hopes to provide a solution. Bhutan, which is known for its focus on environmental conservation, generates nearly 100% of its electricity from hydropower. Its abundant clean energy resources have attracted the attention of companies looking to reduce their carbon footprint.
The fund raising targeting institutional investors will begin at the end of May. DHI and Bitdeer plan to use the money to invest in building data centers and other infrastructure for the green crypto mining operations.
The partnership comes as interest in sustainable investing continues to grow. Investors are increasingly looking for companies that are addressing environmental, social, and governance (ESG) issues, and this initiative fits the bill. The fund will not only promote sustainable practices but will also help to develop Bhutan’s economy.
Bhutan’s Minister for Economic Affairs, Loknath Sharma, said in a statement, “This initiative is expected to open up new avenues for Bhutan’s economy and create job opportunities for our youth. It will help generate export revenue by enhancing the existing value chain of our power sector.”
For Bitdeer, which operates mining facilities in China and Kazakhstan, the partnership provides an opportunity to expand its operations and tap into a new source of clean energy. The company’s CEO, Celine Lu, said in a statement, “We are excited to partner with DHI to promote green development in Bhutan using clean hydroelectric power… We believe this cooperation will bring unique value to our global customers and further strengthen our company’s position in the industry.”
The partnership between DHI and Bitdeer highlights the growing importance of sustainable investing. As companies increasingly recognize the need to address ESG issues, partnerships like this one will likely become more common. By investing in green crypto mining, DHI and Bitdeer hope to create a model for sustainable mining operations that others can follow.
In conclusion, the joint venture between DHI and Bitdeer to develop green crypto mining in Bhutan is a welcome move in an industry that has faced criticism over its environmental impact. By harnessing the country’s abundant hydroelectric power, the partners hope to set an example for sustainable mining operations that can be replicated elsewhere. The fundraising that will begin at the end of May will provide an excellent opportunity for institutional investors to invest in a project that not only promotes sustainable practices but also has the potential to develop Bhutan’s economy.