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    Bhutan Unveils TER, a Gold-Backed Cryptocurrency Issued by the State

    Ethan CarterBy No Comments2 Mins Read
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    Gelephu Mindfulness City (GMC), a special administrative zone in Bhutan, announced on Wednesday the launch of a gold-backed digital token named TER.

    The gold deposits will be held by DK Bank, a government-regulated digital asset bank, and will be issued on the Solana Blockchain network, as stated in GMC’s announcement.

    Matrixdock, a platform specializing in real-world asset tokenization (RWA), will be the technology partner for blockchain tokenization.

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

    Initially, the tokens will be stored at the bank, with rollout dates yet to be confirmed. “Acquiring TER tokens is designed to be as secure and straightforward as buying physical gold from a major financial institution,” the announcement states.

    Cointelegraph attempted to contact DK Bank and GMC representatives but had not received a reply by the time of publication.

    The launch of a sovereign-backed tokenized gold product serves as a hedge against currency inflation in today’s digital era and represents a further advancement in the country’s blockchain adoption strategy, according to GMC’s announcement.

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    Bhutan leads the way in adopting crypto and blockchain technology

    The Bhutanese government is adopting cryptocurrency and blockchain tech to modernize its payment systems and enhance tourism, aiming to become a cryptocurrency hub in the region.

    Since 2019, Bhutan has mined Bitcoin (BTC) using hydroelectric power, holding nearly 6,000 BTC valued at over $540 million, according to Arkham Intelligence.

    In January, GMC revealed a digital asset reserve containing BTC, Ether (ETH), and BNB (BNB), later expanding to include various memecoins and altcoins.

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

    In May, Bhutan partnered with DK Bank and Binance Pay to allow tourists to pay for hotels, tour guides, and tickets using over 100 cryptocurrencies.

    More than 1,000 businesses in Bhutan now accept cryptocurrency payments through the collaboration with Binance Pay and DK Bank.

    Damcho Rinzin, the director of Bhutan’s Department of Tourism, remarked that crypto payment adoption boosts the tourism sector, which has faced challenges due to inadequate payment infrastructure.

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