Bhutan , a country located in the Himalayan region, has partnered with Binance to offer a cryptocurrency payment system for the tourism industry, further partnering with local DK Bank to enable crypto payments nationwide. Bhutan is well known for its Bitcoin treasury accumulation. This is the first time a country has initiated a crypto payment system to boost tourism. South Asian countries have announced a far-reaching system that accepts crypto payments for services, including flights, hotel bookings, transportation, and local shopping. Binance Pay will help facilitate the system using static and dynamic QR codes. Bhutan seeks to boost local businesses, such as vendors in the provincial regions, by allowing tourists to make payments with QR codes. Binance will facilitate the payments with 100 supported cryptocurrencies, including Bitcoin, USDC, and Binance token BNB. The ambitious project comes at a time when many countries are trying to boost tourism. Damcho Rinzin, director of tourism in Bhutan, said that the project was more than just another payment system; it was an attempt to boost innovation and convenience. Binance organises the payments by collaborating with local bank DK Bank to convert payments to fiat currency for the vendors automatically. This is an essential part of the process so vendors can use the system with little change to their business practices. Tourists, meanwhile, can use 100 different cryptocurrencies to pay for products and services during their holiday. The system may be convenient for tourists because they now have a complete solution for handling their monetary concerns. A tourist doesn’t have to worry about finding an outlet to exchange their currency or a compatible ATM to withdraw cash. Tourists can also secure their savings with a crypto wallet, which may be an extra relief, using a trustless network without relying on a bank. Binance also eliminates gas fees so that the costs are minimal. In 2020, Bhutan’s Royal Monetary Authority (RMA) issued a warning about cryptocurrencies, focusing on the Pi token as an example of a risky asset. Despite Bhutan being a key exemplar of a country with a crypto treasury, the country still has a lot of regulatory gaps regarding digital assets. The RMA is particularly interested in how disreputable tokens affect the local economy. The focus on crypto-funded tourism may be a way for Bhutan to find productive use cases for Bitcoin that benefit the economy. This seems like a positive approach, combining a Bitcoin treasury strategy with a practical plan that lets people use Bitcoin to help the country recover from various crises, including a pandemic that disrupted tourism and a trade war that has divided the world. Bhutan owns around $1.2 billion of cryptocurrencies, ranking fifth amongst other countries, beating El Salvador, which also has a reputation for embracing crypto at the federal level. Bhutan owns 12,000 BTC and 659 ETH, worth roughly $1 billion and $1 million, respectively. Most of Bhutan’s Bitcoin tokens were mined using green energy in the Himalayan region. Bhutan has been investing in Hydropower to offset the negative consequences of proof-of-work algorithms. Bhutan has shown an interest in developing practical crypto uses, with recent policies allowing public servants to be paid with crypto. The country has also reportedly used crypto reserves to pay for health upgrades in the public sector.
