The Kingdom of Bhutan, a small landlocked country situated in the Himalayas, is known for its unique development philosophy, Gross National Happiness, which emphasizes sustainable development, cultural preservation, and good governance over economic growth alone. This philosophy also seems to extend to their investment strategy, as it has been revealed that the country’s investment arm, Druk Holding & Investments, has been secretly investing millions of dollars in cryptocurrency since at least 2022. The news came out in court documents as part of Crypto lending platforms BlockFi and Celsius’ bankruptcy filings. What is interesting about this development is that Bhutan has never publicly disclosed any investments in cryptocurrency, let alone a secret crypto portfolio.
The revelation of Bhutan’s involvement in cryptocurrency is a significant development as it is an indication that even small countries are recognizing the potential of digital assets to diversify their investment portfolio. Bitcoin and other cryptocurrencies have gained immense popularity over the years, and more investors are flocking to the space to get a piece of the action. A recent survey by Fidelity Digital Assets found that 70% of institutional investors plan to invest in cryptocurrency in the coming years. This shift towards cryptocurrency is based on the view that digital assets offer a hedge against inflation, a way to diversify traditionally held assets, and an investment option with the potential for high returns.
Crypto lender Amber Group is also looking to change its focus from retail to institutional clients following concerns over regulatory risks in Japan. The country’s regulatory environment is deemed strict, and as such, Amber Group is considering options for its Japanese unit, including a potential sale. The company plans to apply for a Hong Kong license following the city’s pivot towards creating a digital asset hub. This shift by Amber Group highlights the challenges that crypto firms face when operating in a highly regulated industry.
The Bank of Israel is also exploring the possibility of issuing a central bank digital currency, a digital shekel, according to a recent document. The bank is preparing an action plan for the potential issuance of a CBDC and has discussed the conditions that would enable or support such a decision. A digital shekel would provide the Israeli government with greater control over its monetary policy while offering citizens a more efficient means of transacting.
Regulation of cryptocurrencies continues to be a hot topic, with different countries seeking to legislate digital assets in their jurisdiction. Members of the US House of Representatives are currently circulating a new draft bill to provide a regulatory framework for stablecoins in the country. The House Financial Services Committee released a new discussion draft bill on Saturday, ahead of a scheduled hearing on the matter. A regulatory framework for stablecoins would help to provide clarity in the regulatory environment and promote legitimate innovation in the space.
US-based crypto exchange Bittrex is reportedly facing potential action from the US Securities and Exchange Commission (SEC), despite preparing to shut down local operations. The SEC’s enforcement staff told Bittrex in March that it would recommend the agency sue the exchange company over alleged violations of investor protection laws. Bittrex has had a troubled history with regulators, with the New York State Department of Financial Services temporarily banning the exchange in 2019 due to its alleged failure to comply with the state’s virtual currency regulations.
Security remains a significant concern for cryptocurrency exchanges, with many high-profile hacks occurring in the past. Binance, one of the world’s largest cryptocurrency exchanges, has been taking steps to improve security on its BNB Chain blockchain. It recently updated its red alarm list to include 191 high-risk projects and decentralized applications (dapps) currently hosted on the blockchain. These dapps are suspected of issuing fake tokens, having high or opaque tax fees, and other harmful practices. The red alarm list is updated every Friday to keep users informed of potential scams.
Decentralized finance (DeFi) has gone through a meteoric rise over the past year, with billions of dollars locked up in DeFi protocols. Decentralized exchanges (DEXs) have been particularly successful in facilitating trades between users without relying on centralized intermediaries. Aave is a leading DeFi protocol that offers lending and borrowing services to users. The Aave community recently voted in favor of deploying its platform on the zkSync Era Mainnet, a zero-knowledge solution that offers high scalability and low transaction fees. This development will help to expand the utility of the Aave protocol and make it more accessible to a wider range of users.
Finally, luxury watchmakers are taking note of the potential of Bitcoin to attract millennial and Generation Z customers. According to a study by management consultants Bain & Company and the Italian luxury brands association Altagamma Foundation, younger, more digitalized clients are emerging in Asia. H. Moser, a Swiss luxury watch manufacturer, has already carried out sales in Bitcoin, including a $380,000 watch that sold for BTC 10 at the time. This development highlights the potential of Bitcoin as a luxury asset and attests to its growing adoption among millennials and Gen Zs.
In conclusion, the cryptocurrency and blockchain space continue to grow and evolve, with new developments occurring every day. From secret crypto portfolios to central bank digital currencies, cryptocurrency adoption continues to gain traction globally. As the industry evolves, regulation remains a significant challenge, but it is encouraging to see governments taking a proactive approach to providing clarity and oversight. The security of cryptocurrency exchanges and DeFi protocols also remains a significant concern, and developers must continue to improve security measures to protect user funds. Finally, luxury watchmakers’ acceptance of Bitcoin is an indication that the cryptocurrency is becoming more mainstream, a development that is sure to benefit the industry as a whole.
