Bhutan Embraces Gold, Launches Sovereign-Backed RWA Token

Gelephu Mindfulness City (GMC) in Bhutan has announced the launch of a new sovereign gold-backed digital token, known as TER. This token will be issued on the Solana Blockchain network and aims to offer a secure investment option amidst the rising concerns of currency inflation. This initiative is part of Bhutan’s broader strategy to integrate blockchain technology into its economy.

Key Takeaways

Bhutan is launching a sovereign gold-backed digital token called TER.
The physical gold will be stored by DK Bank, a regulated digital asset bank.
The tokens will be based on the Solana Blockchain and are designed to be secure and familiar for investors.
This initiative aims to combat currency inflation and support Bhutan's transition into the blockchain and cryptocurrency space.

Bhutan goes for gold, announces sovereign-backed RWA token

Bhutan’s Move Towards Blockchain Technology

Gelephu Mindfulness City (GMC) in Bhutan has officially unveiled its plan to launch a sovereign gold-backed digital token referred to as TER. The announcement was made on Wednesday, and it has garnered attention for its innovative approach to incorporating gold in the digital asset space. DK Bank, a digital asset bank regulated by Bhutan's government, will secure the physical gold deposits to ensure the token's value. The issuance of TER will occur on the Solana Blockchain network, a popular platform known for its speed and low transaction fees. Matrixdock, a platform specializing in real-world asset tokenization (RWA), plays a critical role in this endeavor by managing the tokenization of the physical asset on the blockchain.

Gold, Inflation, Tokenization, RWA Tokenization, Bhutan
An overview of the tokenized commodities sector, which is dominated by tokenized gold products. Source: RWA.XYZ

In the initial phase, the TER tokens will be held securely at DK Bank, although specific launch dates have yet to be confirmed. The strategy for purchasing TER tokens is designed to make the process as straightforward and secure as buying physical gold from a reputable financial institution.

While Cointelegraph attempted to contact DK Bank and GMC representatives for further information, they had not received any responses by the time of this publication. The introduction of a sovereign-backed tokenized gold product is considered a way to mitigate currency inflation concerns in our increasingly digital world and aligns with Bhutan's ongoing adoption of blockchain technology.

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Bhutan’s Vision for a Cryptocurrency Hub

The government of Bhutan is actively promoting cryptocurrency and blockchain technology as part of its efforts to modernize its payment systems and enhance the tourism sector. The ambition is to establish Bhutan as a regional cryptocurrency hub. Since 2019, Bhutan has been mining Bitcoin using its hydroelectric resources, and it currently holds nearly 6,000 BTC, valued at over $540 million, according to Arkham Intelligence.

Earlier in January, GMC announced the creation of a digital asset reserve comprising not just Bitcoin, but also Ethereum (ETH) and Binance Coin (BNB), with plans to diversify into other digital currencies, including some memecoins.

Gold, Inflation, Tokenization, RWA Tokenization, Bhutan
Government of Bhutan’s crypto holdings. Source: Arkham Intelligence

In collaboration with DK Bank and Binance Pay, Bhutan has implemented a system that allows tourists to pay for hotels, tours, and admission tickets using over 100 cryptocurrencies. As a result, more than 1,000 businesses across Bhutan now accept cryptocurrency payments through this partnership. Damcho Rinzin, the director of Bhutan’s Department of Tourism, emphasized that the adoption of cryptocurrency payments is crucial for revitalizing the tourism sector, which has suffered from inadequate payment infrastructure.

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