The Himalayan kingdom of Bhutan, known for its Gross National Happiness Index and largely agriculture-based economy, has been secretly investing millions of dollars in cryptocurrencies like Bitcoin and Ethereum. The investments were revealed through the bankruptcy filings of crypto lenders BlockFi and Celsius. This revelation raises questions about the reclusive nation's relationship to the turbulent crypto economy and could indicate a game-changing strategy for smaller nations seeking to gain an edge in the financial world.
According to court documents, Bhutan's $2.9 billion sovereign investment arm, Druk Holding & Investments, was a customer of BlockFi and Celsius, which it never publicly disclosed. In recent months, Druk withdrew over $65 million and deposited nearly $18 million in digital assets through Celsius. While the source and purpose of these funds remain unknown, these investments seem like a curious move for a holding company focused on promoting domestic ventures.
This secretive crypto investment could indicate a game-changing strategy for smaller nations. It seems to follow a game theoretical point of view where smaller nations and companies are the first to adopt cryptocurrencies, eventually leading to larger nations and corporations following suit. If Druk is indeed a sovereign wealth fund, it would be the first to directly own cryptocurrency, setting a precedent for other nations to follow.
The kingdom of Bhutan has shown interest in the crypto world, hosting a panel of blockchain advocates in 2020 and working with Ripple to pilot a central bank digital currency in 2021. These partnerships suggest that the nation sees potential benefits in embracing the world of cryptocurrencies and blockchain technology.
Bhutan's undisclosed investments in cryptocurrencies could represent a new financial strategy for small nations looking to compete in the global economy. By embracing cryptocurrencies and blockchain technology, Bhutan is following a game theoretical approach, where smaller nations and companies adopt new technologies before larger ones. As more countries and institutions recognize the potential benefits of cryptocurrencies, the trend could ultimately lead to widespread adoption and significant changes to the global financial landscape.
TL;DR:
Bhutan has been secretly investing millions of dollars in cryptocurrencies like Bitcoin and Ethereum, revealed through the bankruptcy filings of BlockFi and Celsius.
These investments could indicate a game-changing strategy for small nations, following a game theoretical point where smaller nations and companies adopt cryptocurrencies before larger ones.
Bhutan has shown interest in the crypto world, partnering with Ripple for a central bank digital currency pilot program and hosting blockchain advocates in 2020.
This trend could ultimately lead to widespread adoption of cryptocurrencies and significant changes to the global financial landscape.