Bitcoin News Today: Bhutan's Centralized Crypto Push Challenges Decentralized Ideals

The Royal Government of Bhutan has staked 320 Ether (ETH), valued at approximately $970,000, through Figment, a staking provider that facilitates institutional participation in proof-of-stake networks. According to reports, this move underscores Bhutan's growing engagement with blockchain technology and digital assets, positioning the Himalayan nation as a notable player in the global crypto landscape. The staking initiative aligns with Bhutan's broader strategy to integrate blockchain into public services, including its ongoing migration of a self-sovereign digital ID system from Polygon to Ethereum.

The transition, which began in October 2024, aims to enable residents to verify identities and access government services on the Ethereum network, with full migration expected by early 2026.

Bhutan's digital asset activities extend beyond staking. The country has quietly accumulated 6,154 Bitcoin (BTC) since 2019 by leveraging its hydropower resources for mining, a portfolio now valued at over $562 million at current prices. This strategic reserve mirrors trends in institutional and corporate Bitcoin accumulation, where large holders increasingly influence market dynamics. For context, corporate treasury holders like MicroStrategy and Marathon Holdings hold 649,870 BTC and 53,250 BTC, respectively, while the enigmatic Satoshi Nakamoto is estimated to control 1.1 million BTC. Bhutan's approach, however, is distinct in its blend of state-led innovation and sustainable energy utilization.

The government's crypto ambitions also include modernizing tourism and financial infrastructure. In July 2025, Bhutan announced a partnership with Binance to integrate cryptocurrency payments across the country, with nearly 1,000 merchants already onboarded. The initiative seeks to streamline cross-border transactions and enhance the travel experience for younger, tech-savvy tourists. This expansion reflects a global shift toward crypto adoption in commercial ecosystems, albeit under Bhutan's unique socio-economic framework according to reports.

While Bhutan's initiatives highlight the potential of blockchain in governance and economic development, they also raise questions about scalability and regulatory alignment. The country's centralized approach contrasts with decentralized ideals, yet its controlled experimentation offers insights into how small nations can harness digital assets without compromising sovereignty. As global regulators grapple with crypto's role in payment systems and asset management, Bhutan's path may serve as a case study for balancing innovation with institutional oversight.