Druk Holding & Investments – the investment arm of the Royal Government of Bhutan – has partnered with Nasdaq-listed company – Bitdeer Technologies Group – to introduce a $500 million fund that is expected to support bitcoin mining activities in the Himalayan country.
Recent sources have suggested that the country has been secretly producing BTC since 2017, using its large amount of hydropower.
Bhutan’s mission to become a BTC mining hub
The government of the landlocked South Asian country seems determined to make the region a major factor in the bitcoin mining scene. For this purpose, Druk Holding & Investments collaborated with Bitdeer to raise half a billion dollar fund. The funding could expand green crypto mining in the region by deploying Bhutan’s hydropower resources.
The fund is expected to start targeting institutional investors at the end of May, while Druk and Bitdeer will also participate as backers. Ujjwal Deep Dahal – CEO of Bhutan’s investment arm – believes that entering the BTC mining sector is the least risky way for the country to join the industry.
“It’s important for us to look at low-volume, high-value or digital assets, and try to position ourselves so that we can be globally competitive over time to build our economy.” , he added.
Bitdeer – a Singapore-based crypto mining giant – aims to establish a 100 megawatt operation in Bhutan. Construction is expected to begin in the second quarter of the year and end in September.
Recent sources suggests that Bhutan might have jumped on the BTC mining bandwagon as early as 2017. A government official told Forbes earlier this week that the country joined the ecosystem “a few years ago as one of the first incoming when the price of bitcoin was around $5,000″.
Bhutan’s other crypto incursions
Apart from its massive bitcoin mining plans, the country has also attach intentions to launch a digital version of its national currency. The enterprise blockchain provider – Ripple – said in 2021 that it would allow the Royal Monetary Authority (Bhutan’s central bank) to use its network for this purpose:
“Today we are proud to announce our partnership with Bhutan’s central bank, the Royal Monetary Authority (RMA), which will use Ripple’s CBDC solution to pilot a central bank digital currency (CBDC) in phases. .”
The bank expects the potential move to improve cross-border payments and expand financial inclusion. Ripple said it would take into account Bhutan’s green policies, explaining that the CBDC solution would live up to its principles:
“Ripple’s commitment to sustainability was important to Bhutan. The CBDC solution is carbon neutral and, because it is based on the public XRP ledger, is 120,000 times more energy efficient than proof-of-work blockchains.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off Binance Futures fees for the first month (terms).
PrimeXBT Special Offer: Use this link to sign up and enter code CRYPTOPOTATO50 to receive up to $7,000 on your deposits.