Gelephu Mindfulness City (GMC), a dedicated administrative zone in Bhutan, announced on Wednesday the launch of a sovereign gold-backed digital token named TER.
The physical gold will be held in custody by DK Bank, a digital asset bank regulated by the Bhutanese government, and issued on the Solana Blockchain network, as stated in GMC’s announcement.
Matrixdock, a platform focused on real-world asset tokenization (RWA), is the technology partner responsible for implementing the real-world asset on the blockchain.
Initially, the tokens will be kept in custody at the bank, with precise rollout dates yet to be determined. “Acquiring TER tokens is designed to be as secure and straightforward as purchasing physical gold from a major financial institution,” the announcement notes.
At the time of publication, Cointelegraph attempted to contact DK Bank and GMC representatives but had not received a response.
The introduction of a sovereign-backed tokenized gold product serves as a safeguard against currency inflation in the digital era and represents another advancement in the country’s blockchain adoption strategy, according to GMC’s announcement.
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Bhutan stays ahead by embracing crypto and blockchain technology
The government of Bhutan is integrating cryptocurrency and blockchain technology to modernize the country’s payment systems and enhance the tourism sector, aiming to become a regional cryptocurrency hub.
Since 2019, Bhutan has utilized hydroelectric power for Bitcoin (BTC) mining and currently holds nearly 6,000 BTC, valued at over $540 million at this writing, as reported by Arkham Intelligence.
In January, GMC announced a digital asset reserve that includes BTC, Ether (ETH), and BNB (BNB), which was later expanded to incorporate small amounts of memecoins and other altcoins.
In May, Bhutan partnered with DK Bank and Binance Pay to enable tourists to pay for accommodations, guides, and tickets using over 100 cryptocurrencies.
More than 1,000 businesses across Bhutan accept cryptocurrency payments through the collaboration with Binance Pay and DK Bank.
Damcho Rinzin, the director of Bhutan’s Department of Tourism, stated that the adoption of crypto payments significantly benefits the tourism industry, which has faced challenges due to insufficient payment infrastructure.
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