El Salvador and Bhutan bet $550M and $1B on Bitcoin’s future
El Salvador and Bhutan have made bold investments in Bitcoin (CRYPTO:BTC), betting on its potential to drive economic growth and stability for their nations.
El Salvador, under President Nayib Bukele's leadership, adopted Bitcoin as legal tender in 2021.
The country has accumulated over 6,150 Bitcoin, worth approximately $550 million.
These investments are part of broader economic reforms aimed at boosting financial inclusion, reducing debt, and attracting foreign investment.
El Salvador has witnessed a 19% GDP growth from 2021 to 2023 and a significant reduction in its debt-to-GDP ratio from 95% in 2020 to 59% in 2024.
One of the key successes has been the transformation of the remittance sector, where Bitcoin transfers have reduced fees and made transactions faster.
The country’s Bitcoin City project, powered by geothermal energy, is another major initiative to create a crypto-friendly zone funded by $1 billion "Volcano Bonds."
On the other hand, Bhutan has taken a more calculated approach, focusing on Bitcoin mining rather than adoption.
Utilising its abundant renewable hydropower resources, Bhutan has developed one of the world’s most efficient Bitcoin mining operations.
The country's sovereign fund, Druk Holding & Investments, holds over $1 billion in Bitcoin, making it a significant national asset.
While Bhutan’s mining venture has faced challenges, such as issues with platforms like BlockFi and Celsius, the government remains committed to Bitcoin as a long-term growth strategy.
Both nations are part of a growing trend of using Bitcoin as an alternative to traditional reserve assets like gold.
Bitcoin's decentralisation and fixed supply make it an attractive store of value, despite its volatility.
El Salvador’s Bitcoin City and Bhutan’s mining efforts could serve as models for other nations considering crypto-driven economic strategies.
At the time of reporting, the Bitcoin (BTC) price was $100,123, ranked #1.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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