Bhutan Has Introduced Crypto Payments for Tourists

The Bhutanese government has partnered with local digital bank DK Bank to introduce Binance Pay service to accept cryptocurrencies in the travel industry.

Users will be able to pay for airfare, hotels, tours and even street food via QR codes using bitcoin, BNB, USDC and 97 other assets.  

Payments are converted into the local currency ngultrum through DK Bank. According to Binance, more than 100 local merchants have already joined the system. The solution will simplify payment for small businesses that do not have card terminals: a smartphone with a QR code will suffice.  

Binance said the integration will reduce currency conversion fees and solve the problem of international cards not being accepted. 

According to Bitcoin Treasuries, Bhutan has the fifth largest bitcoin reserves in the world. The country has 12,062 BTC on its balance sheet. 

The kingdom is actively increasing its reserves through mining. The state is utilizing abundant hydropower resources for this purpose. 

Earlier this year, the Special Administrative Region of Bhutan included digital assets, including bitcoin and BNB, into strategic reserves.

Bhutan government has moved 935 BTC to Binance

On October 29, 2024 the Royal Government of Bhutan transferred ~935 BTC ($66.4 million) to the deposit address of major cryptocurrency exchange Binance, according to Arkham.

The transfer was realized in two parts: first 102.782 BTC, and about an hour later - 832.249 BTC.

Prior to that, the last time Bhutanese authorities sent bitcoins to a centralized exchange was on July 1 - Kraken deposited 381 BTC worth $24.1 million at the time.  

The reason for the latest transaction is unknown, but historically, deposits on CEX are often followed by sales. 

At the time of writing, the total value of crypto assets in the custody of the Bhutanese government exceeds $890 million.

The funds are managed by state-owned investment fund Druk Holding & Investments. According to Bitcoin Treasuries, Bhutan ranks fifth in the ranking of crypto-asset holding countries.

While many countries are replenishing their bitcoin reserves through confiscated assets, the ”dragon kingdom” is actively building up reserves through mining. For this purpose, the state uses abundant hydroelectric resources.

Forbes previously investigated and found out that the Kingdom of Bhutan has become a ”crypto-Shangri-La” thanks to the country's authorities allocating land, funding and energy for bitcoin mining.

Bitcoin holdings of DPRK hackers exceeded those of El Salvador and Bhutan

North Korean hacker group Lazarus currently owns 13,518 BTC ($1.13 billion at the time of writing), which is more than the amount in the wallets of the government of Bhutan or El Salvador. This is evidenced by data from Arkham Intelligence.

In comparison, the Bhutan has 12,062 BTC on its balance sheet. The kingdom is actively increasing its reserves through mining. The state utilizes abundant hydroelectric resources for this purpose. 

The Salvador has 6,118 BTC.  The country recognized the first cryptocurrency as legal tender, it regularly buys coins and mines.

Analysts attribute Lazarus' substantial bitcoin hoard to the late February hack of cryptocurrency exchange Bybit for $1.4 billion. The hackers laundered most of the stolen ether, mostly using DeFi protocol THORChain.

In addition to bitcoins, the group owns about $30 million worth of other cryptocurrencies, including Ethereum, BNB, DAI and BUSD.

The largest holder of digital gold remains the US with 198,109 BTC. The country is preparing to create a bitcoin reserve using cryptoassets seized in criminal and civil proceedings.

The United Kingdom owns 61,245 BTC, according to Arkham.

According to Chainalysis, North Korean hackers hijacked $1.34 billion worth of crypto assets in 2024. The UN estimates that about half of the DPRK's foreign currency revenue is derived from cyberattacks. These funds in particular go to programs  to create weapons of mass destruction and ballistic missiles.