New research conducted by Arkham Intelligence indicates that Bhutan has a significantly larger amount of Bitcoin [BTC] in reserve compared to El Salvador, a country known for its enthusiastic adoption of Bitcoin.
Arkham’s findings reveal that a cluster of Bitcoin addresses associated with Bhutan’s Druk Holdings contains 13,029 BTC, with an approximate value of $758 million. This amount surpasses El Salvador’s Bitcoin reserves by more than double, which began accumulating in September 2021 when Bitcoin prices were trading at around $51,700.
This development positions Bhutan as an emerging presence in the cryptocurrency realm and signals a broader trend of nations embracing digital assets.
Bhutan vs. El Salvador
While El Salvador gained global recognition in 2021 for becoming the first country to establish Bitcoin as legal tender, Bhutan’s approach to cryptocurrencies has largely gone unnoticed.
El Salvador’s decision was primarily influenced by President Nayib Bukele’s vision of using Bitcoin to provide financial services to the unbanked population and drive economic progress. The country has since amassed approximately 2,381 BTC, showcasing a nationwide commitment to cryptocurrency adoption.
In contrast, Bhutan’s management of Bitcoin holdings through Druk Holdings, the commercial entity of the royal government, has maintained a more discreet profile. The revelation of 13,029 BTC holdings by Arkham suggests that Bhutan’s strategy focuses less on public policy and more on utilizing Bitcoin as a secure investment and store of value.
Besides Bitcoin, Bhutan also diversifies its digital asset portfolio, holding 656 Ethereum [ETH] equivalent to around $1.5 million, along with smaller amounts of BNB and Polygon [POL]. This diversified approach indicates a strategic adoption of crypto assets, emphasizing long-term value preservation and portfolio diversification.
Rising Crypto Adoption on a Global Scale
The differing strategies employed by Bhutan and El Salvador underscore the various approaches nations are taking towards cryptocurrency integration.
El Salvador’s vocal support for Bitcoin has garnered international interest and set a precedent for other countries considering incorporating cryptocurrency into their economic frameworks. Meanwhile, Bhutan’s understated accumulation of digital assets reflects a broader trend of national institutions quietly entering the crypto market.
As more countries explore the use of digital assets for economic policies or wealth management, the influence of cryptocurrency on the global stage continues to expand.
Bhutan and El Salvador, despite their distinct methodologies, both exemplify sovereign entities recognizing the potential of cryptocurrency as a significant financial asset.
The unveiling of Bhutan’s Bitcoin reserves signifies a pivotal moment in the narrative of global crypto adoption, demonstrating that even smaller nations are making notable strides in the cryptocurrency landscape.