In a stunning turn of events, the recent Bitcoin price rally has propelled the crypto holdings of two unlikely countries – El Salvador and Bhutan – to unprecedented heights. As BTC soared past $88,000, El Salvador’s Bitcoin stash surpassed $500 million, while the tiny Himalayan Kingdom of Bhutan saw its crypto reserves top an astonishing $1 billion.
Bukele’s Bitcoin Bet Pays Off Big
For El Salvador’s President Nayib Bukele, the Bitcoin surge represents a massive vindication of his bold crypto strategy. Despite facing criticism from the IMF and others, Bukele made Bitcoin legal tender in 2021 and continued to buy the dip as prices slumped. Now, with BTC roaring back, El Salvador’s 5,932 Bitcoin are worth over half a billion dollars – a tidy 1.5% of the nation’s GDP.
We’re seeing the genius of Bukele’s long-term vision. While others doubted, he had faith in Bitcoin and it’s paying off in a big way for El Salvador.
An anonymous government official in San Salvador told our sources
Bolstered by the Bitcoin gains, El Salvador announced plans to buy back $2.5 billion of its dollar-denominated debt. The nation’s bonds rallied 4.7% on the news, as investors cheered the improving fiscal outlook under the pro-crypto President Bukele.
Bhutan: The Unlikely Crypto Mining Powerhouse
But the story of Bhutan may be even more remarkable. The isolated mountain kingdom, home to just 800,000 people, now holds over 12,574 Bitcoin – worth more than $1.1 billion at current prices. Astonishingly, Bhutan’s crypto stash equals more than one-third of its entire $3 billion GDP.
How did Bhutan become a crypto powerhouse? The answer lies in its abundant hydroelectric resources. Flush with excess renewable energy, Bhutan has quietly become a major Bitcoin mining hub in recent years.
Bhutan’s vast hydropower enables extremely low-cost Bitcoin mining. They’ve exploited that edge to build up BTC reserves equal to a third of GDP, a far higher share than any other country.
Noted a crypto mining expert familiar with Bhutan’s industry
National Crypto Holdings Spark Intrigue and Concerns
The swelling Bitcoin coffers of El Salvador and Bhutan are sure to intensify the heated debates around cryptocurrency adoption at the national level. Supporters will point to the huge windfalls as validation of crypto’s potential benefits for emerging economies. But critics, including the IMF, are likely to view the massive crypto holdings as dangerous speculation that could threaten economic stability.
For now though, Bhutan and El Salvador are riding high on their crypto bets. With Bitcoin continuing its surge and their crypto stashes ballooning in value, these unlikely crypto pioneers are set to remain in the spotlight. As other countries weigh the risks and rewards of diving into crypto, they’ll be closely watching to see if the Bhutanese and Salvadoran experiments pay off – or go bust.
One thing is certain: the age of national crypto reserves has arrived, and the global financial landscape may never be the same. As digital assets go mainstream, the question for governments is no longer whether to get involved with crypto, but how much to bet on its future. For El Salvador and Bhutan, those bets are already looking like smart money. Only time will tell if others follow their lead into the brave new world of national crypto riches.
