bitcoinlfg

Tag: reserves

  • Bhutan plans to fund Gelephu Mindfulness City using national Bitcoin reserves

    Bhutan plans to fund Gelephu Mindfulness City using national Bitcoin reserves

    Bhutan plans to fund Gelephu Mindfulness City using national Bitcoin reserves

    • Bhutan plans to use up to 10,000 Bitcoin from its national reserves to fund Gelephu Mindfulness City.
    • Bhutan holds about 11,286 Bitcoin, making it the fifth-largest national holder globally.
    • The city will be developed in phases over 20 years with executive autonomy and legal independence.

    Bhutan is preparing to deploy part of its national Bitcoin reserves to finance the development of the Gelephu Mindfulness City, a flagship urban project designed to reshape the country’s economic future, as per a Cointelegraph report.

    The Himalayan kingdom has confirmed that it will tap up to 10,000 Bitcoin from its holdings to support the special administrative region, which was launched in 2024.

    The move places Bhutan among a small group of governments actively integrating digital assets into long-term development planning, while also highlighting how Bitcoin mining and treasury management have become embedded in the country’s broader economic strategy.

    Gelephu Mindfulness City vision

    Gelephu Mindfulness City is located in southern Bhutan near the Indian border and has been positioned as a new economic hub aimed at reversing youth migration.

    The project seeks to create high-value domestic jobs and expand opportunities beyond the country’s traditional sectors.

    According to official plans, the city is designed to attract companies across finance, tourism, green energy, technology, healthcare, and agriculture.

    The special administrative region covers around 1,544 square miles, equivalent to roughly 10% of Bhutan’s total land area.

    Its regulatory structure allows greater flexibility, particularly for crypto and fintech firms, while also supporting the expansion of Bhutan’s Bitcoin mining activities.

    Officials have described the city as a testing ground for new economic models that balance innovation with sustainability.

    Bitcoin funding strategy

    According to Cointelegraph, the government said on Wednesday that a range of approaches is being considered to manage the Bitcoin allocation, valued at about $875 million.

    These include risk-managed yield strategies, treasury-style management, and long-term holding plans intended to protect and preserve the value of the assets.

    Authorities have emphasised that development funding will proceed in a stable and sustainable manner, with governance frameworks focused on capital preservation, oversight, and transparency.

    Bhutan ranks as the fifth-largest national holder of Bitcoin, with most of its reserves accumulated through mining operations.

    Data from Bitbo estimates that the country holds about 11,286 Bitcoin, with a market value exceeding $986 million.

    The Gelephu plan represents the most concrete use yet of this digital asset stockpile for public development.

    National Bitcoin policy

    The decision to use Bitcoin for Gelephu Mindfulness City forms part of Bhutan’s broader Bitcoin Development Pledge, a national policy aimed at supporting long-term economic growth through mining and asset management.

    King Jigme Khesar Namgyel Wangchuck has stated that the objective is to ensure that the entire population of more than 796,682 people benefits from the project.

    As part of this approach, Bhutan is developing a new land policy intended to protect landowners, prevent widening inequality, and ensure shared national prosperity.

    The city has been framed as a collective national enterprise, with landowners treated as stakeholders.

    Because most land is state-owned, citizens from all Dzongkhags are expected to share in the project’s success.

    Governance and rollout

    A masterplan and legal framework for Gelephu Mindfulness City have already been unveiled, alongside the appointment of a governor and a board of directors.

    Construction work has begun to clear and prepare the site.

    The region has also introduced crypto-based payments for merchants and tourism services and launched TER, a sovereign-backed digital token linked to physical gold.

    The city has been envisioned as an economic corridor connecting South Asia and Southeast Asia, with executive autonomy and legal independence.

    Development is planned in phases over the next 20 years, reflecting Bhutan’s long-term strategy to integrate digital assets, infrastructure, and governance reform.

    Share this article
    Categories
    Tags

    Source link

  • Brazil explores Bitcoin reserves as central bankers meet in Rio

    Brazil explores Bitcoin reserves as central bankers meet in Rio

    Brazil explores Bitcoin reserves as central bankers meet in Rio

    • Lawmakers previously proposed a $19 billion Bitcoin reserve.
    • Countries like Germany, Pakistan, and the Philippines are reviewing similar plans.
    • Brazil’s Drex CBDC could support future digital reserve systems.

    Brazil’s central bank is preparing to host one of Latin America’s most closely watched financial events next month, as global reserve managers gather in Rio de Janeiro for the Central Banking Autumn Meetings.

    Among the top items on the agenda is the growing debate over whether Bitcoin and other cryptocurrencies could play a role in national reserves.

    The meetings, as reported by local media, will bring together central bankers and policymakers from across the region to discuss new approaches to financial resilience, digital innovation, and inflation management.

    Brazil’s participation marks a critical step in positioning the country at the centre of the region’s emerging digital asset strategy.

    Brazil’s growing focus on Bitcoin as a reserve asset

    At the Rio meetings, Brazil’s representatives will join officials from Colombia, Jamaica, and the Bahamas to discuss how Bitcoin could be integrated into sovereign reserves.

    The discussions will cover issues such as volatility, liquidity, and the potential of Bitcoin as a hedge against inflation.

    This focus comes as Brazil’s lawmakers continue to evaluate a proposal to create a $19 billion sovereign Bitcoin reserve.

    The plan, which was previously discussed in parliamentary hearings, seeks to position Bitcoin as both a strategic financial asset and a tool to diversify the country’s holdings.

    During earlier sessions, policymakers heard from technical experts in the digital asset sector on how Bitcoin could serve as a reserve asset alongside gold and foreign currencies.

    By taking these discussions to an international policy forum, Brazil is signalling that the question of Bitcoin reserves is no longer limited to domestic politics but is becoming a subject of regional collaboration.

    Global momentum behind national Bitcoin reserves

    Brazil’s renewed interest in digital reserves comes amid a wider global shift toward rethinking reserve composition.

    In the United States, officials have begun evaluating a proposal to establish a strategic Bitcoin reserve that could act as a safeguard against economic shocks.

    Although the plan is still in early stages, it has drawn significant international attention, prompting other economies to assess similar measures.

    In Europe, Germany’s second-largest political party recently submitted a motion calling for the creation of a national Bitcoin reserve.

    The proposal urged the government to consider Bitcoin as a protection against inflation and currency depreciation, reflecting growing institutional acceptance of digital assets within traditional finance.

    Elsewhere, countries such as the Philippines and Pakistan have also initiated reviews of policy drafts that would allow Bitcoin to be recognised as a strategic asset.

    While most central banks do not yet hold cryptocurrencies in their reserves, the shift in dialogue from speculation to formal policy review suggests the idea is becoming increasingly mainstream.

    Infrastructure and policy implications for Brazil

    Brazil’s exploration of Bitcoin reserves is likely to overlap with its ongoing work on the Drex, the country’s central bank digital currency.

    The Drex project aims to create a tokenised version of the Brazilian real that could facilitate interoperability between fiat and blockchain-based systems.

    Experts believe that the infrastructure developed for Drex could eventually provide the technical foundation needed for managing reserve assets in digital form.

    However, central banks worldwide still face challenges in safely storing, auditing, and reporting digital reserves. Market volatility and accounting standards remain major considerations.

    For Brazil, next month’s meetings could help shape a roadmap for addressing these operational hurdles through regional cooperation.

    A strategic moment for Latin America’s financial policy

    The upcoming Rio meetings could mark a turning point for how Latin American economies view digital reserves.

    With inflation pressures and currency volatility continuing to shape monetary policy, Bitcoin’s inclusion in sovereign strategies may no longer be a distant possibility.

    Although no immediate policy shift is expected, Brazil’s leadership in hosting these discussions places it at the forefront of digital finance policymaking in the region.

    The outcomes could determine how quickly central banks move from debate to implementation, setting the stage for future integration of Bitcoin into the global reserve system.

    Share this article
    Categories
    Tags

    Source link

  • Deutsche Bank sees parallels between Gold and Bitcoin as central banks boost gold reserves

    Deutsche Bank sees parallels between Gold and Bitcoin as central banks boost gold reserves

    • Deutsche Bank says gold now makes up 24% of central bank reserves, the highest share since the 1990s.
    • Analyst Marion Laboure sees parallels between gold and Bitcoin as safe-haven, low-correlation assets.
    • Deutsche Bank predicts both Bitcoin and gold could join central bank reserves by 2030.

    Global central banks are expanding their gold holdings at a pace not seen in decades, a trend that could have major implications for Bitcoin, according to a new report from Deutsche Bank.

    The bank’s strategists noted that gold’s share of central bank reserves climbed to 24% in the second quarter, its highest level since the 1990s, marking a renewed confidence in the precious metal amid shifting global monetary dynamics.

    Deutsche Bank’s findings highlight how gold’s resurgence and Bitcoin’s momentum in 2025 share several common characteristics, particularly as investors and policymakers seek alternative stores of value in an uncertain economic environment.

    Central Banks’ Gold accumulation reaches multi-decade highs

    The report shows that official demand for gold has doubled compared to the 2011–2021 average, signaling an intensified effort by central banks to diversify away from fiat currencies.

    The strategists described this as a “significant shift in global finance,” echoing patterns seen throughout the 20th century when gold played a dominant role in global reserves.

    Gold’s renewed accumulation coincides with its climb past inflation-adjusted all-time highs.

    Although gold prices have been setting nominal records for several years, Deutsche Bank noted that only recently has the metal surpassed its real-adjusted peak from 1980.

    “It’s only in recent weeks that gold has finally surpassed its real-adjusted all-time highs from around this point 45 years ago,” the bank’s strategists wrote.

    They attributed the decades-long gap between those milestones to a combination of factors, including central bank gold sales, institutional sell-offs, and the rise of the fiat currency era.

    The report also recalled that gold’s formal role as a reserve asset ended in 1979 when the International Monetary Fund (IMF) prohibited member countries from pegging exchange rates to gold — a move that cemented the end of the Bretton Woods system.

    Bitcoin emerges as a modern parallel to Gold

    Deutsche Bank’s macro strategist Marion Laboure explored potential parallels between gold and Bitcoin in a report titled “Gold’s reign, Bitcoin’s rise.”

    She observed that both assets have shown similar long-term performance patterns since their inception and share a reputation for high volatility and periods of underperformance.

    Laboure emphasized that both gold and Bitcoin have a low correlation with traditional financial assets, making them attractive options for diversification.

    These shared traits, she suggested, contribute to their appeal as potential “safe-haven” assets in times of market uncertainty.

    While Laboure acknowledged that Bitcoin’s volatility and lack of backing remain major concerns, she noted that volatility has declined to historic lows.

    Other challenges — including limited adoption, speculative behavior, cybersecurity risks, and liquidity constraints — continue to limit Bitcoin’s suitability as a mainstream reserve asset, but its trajectory is drawing increasing institutional attention.

    Looking ahead: Bitcoin and Gold in central bank reserves by 2030?

    Despite lingering skepticism among policymakers, Laboure predicted that both Bitcoin and gold could feature on central bank balance sheets by 2030.

    The forecast reflects a gradual convergence between traditional and digital stores of value, particularly as institutional adoption of Bitcoin expands and governments explore ways to diversify their reserves.

    Still, she cautioned that Bitcoin’s volatility and perceived risk profile remain key barriers for central banks, whose primary mandate is to preserve capital stability.

    Share this article
    Categories
    Tags

    Source link

  • Binance unveils its proof of reserves mechanism

    Binance unveils its proof of reserves mechanism

    • Binance’s proof of reserves system initially shows results for the flagship cryptocurrency Bitcoin.
    • The crypto exchange will add other tokens and networks as well as implement ZK-SNARKs.
    • Crypto exchanges are looking to show they have the assets they should hold after the shocking collapse of FTX.

    Binance has published its proof-of-reserve (PoR) system, days after CEO Changpeng Zhao pledged to have the mechanism in place following the collapse of rival FTX.

    The bankruptcy and the contagion that followed crashed the market, with Binance Coin price dropping to lows of $250. Bitcoin price also fell below $16,000, hitting its lowest level since 2020.

    In response, multiple exchanges had released a snapshot of their asset reserves. But the crypto community largely noted the snapshot of assets alone wasn’t enough – there was a need to have exchanges’ liabilities also available.

    Binance’s proof of reserves showed a 101% ratio

    In its update on the issue, Binance has noted its users are now able to verify the exchanges holdings. As for what’s possible now, Binance announced the mechanism will initially support Bitcoin. The exchange will look to add other tokens and networks over the next few weeks.

    Binance will also allow for the auditing of its proof of reserves results by third-party auditors and implement ZK-SNARKs to help bolster privacy and robustness.

    “Because Binance offers Margin and Loans services, the audit results will show the Net Balance, Equity and Debt of each user, where the Net Balance = Equity – Debt,” the Binance team wrote.

    A snapshot taken on 22 November 2022 at 23:59 (UTC) shows Binance’s on-chain Bitcoin balances stood at 582,485.9302, while customer net balance was 575,742.4228. The reserve ratio from the snapshot was 101%, with the margin at 6,743 BTC.

    Binance customers can verify whether the exchange holds their crypto as it should.

    Share this article
    Categories
    Tags

    Source link