Gelephu Mindfulness City (GMC), a designated administrative zone in Bhutan, announced on Wednesday the launch of a sovereign gold-backed digital token named TER.
According to GMC’s announcement, the physical gold reserves will be managed by DK Bank, a digital asset bank regulated by the Bhutanese government, and issued on the Solana Blockchain network.
Matrixdock, a tokenization platform for real-world assets (RWA), is the technology partner responsible for the blockchain asset tokenization.
The initial phase will involve the tokens being held at the bank, with specific launch dates yet to be determined. “The process of buying TER tokens is designed to be as secure and familiar as purchasing physical gold from a major financial institution,” the announcement states.
Cointelegraph reached out to DK Bank and GMC representatives, but no response was received prior to publication.
The introduction of a sovereign-backed tokenized gold product serves as a safeguard against currency inflation in the digital era, furthering the country’s blockchain adaptation strategy, according to GMC’s announcement.
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Bhutan leads the way in crypto and blockchain technology adoption
The Bhutanese government has adopted cryptocurrency and blockchain technology to modernize its payment system and enhance the tourism sector, aiming to position itself as a regional cryptocurrency hub.
Since 2019, Bhutan has been mining Bitcoin (BTC) using hydropower, currently holding nearly 6,000 BTC valued at over $540 million, as reported by Arkham Intelligence.
In January, the GMC unveiled a digital asset reserve inclusive of BTC, Ether (ETH), and BNB (BNB), which later broadened to include minor amounts of memecoins and other altcoins.
In May, Bhutan partnered with DK Bank and Binance Pay to allow tourists to pay for accommodations, tours, and tickets using over 100 cryptocurrencies.
More than 1,000 businesses in Bhutan accept cryptocurrency payments through the collaboration with Binance Pay and DK Bank.
Damcho Rinzin, director of Bhutan’s Department of Tourism, stated that adopting cryptocurrency payments supports the tourism sector, which has faced challenges due to inadequate payment infrastructure.
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