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Digital Financial Tools for Sustainable Development in Bhutan

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The recent conference on digital finance in Bhutan highlighted the potential of innovative financial tools to support the country’s economic development, particularly in the post-COVID-19 era. The event brought together experts from various fields to discuss the benefits and opportunities of digital financial technologies in promoting sustainable growth and reducing poverty.

Key Takeaways from the Conference

  • Second Digital Revolution: The need for a second digital revolution that brings added value to services or products sold through digitalization.
  • Asset Tokenization: The potential for digital finance techniques such as asset tokenization to incentivize investment in digital economy infrastructure.
  • Blockchain Platforms: The advantage of blockchain platforms allowing all transactions to be tracked and traced following environmental, social, and governance (ESG) compliance requirements.
  • Universal Digital Wallet: The feasibility of issuing a universal digital wallet and digitizing the payments ecosystem to support fintech innovation.
  • Financial Inclusion: The potential for digital assets/currencies to provide financial inclusion solutions for Bhutanese citizens.
  • Localized Assets: The possibility of creating digital assets based on Bhutanese cultural and other localized assets to make them available in limited digital editions enabled by blockchain and digital finance technologies.
  • Digital Finance SuperApp: The importance of developing a “Digital Finance SuperApp” covering all critical features such as digital wallet, digital asset exchange/swap functionality, and cross-border payments.
  • Capital Markets Development: The potential for Bhutan to develop its capital markets through the creation of digital bond sovereign bond issuance.
  • Happiness Bond Standards: The possibility of creating Bhutanese Happiness Bond Standards leveraging Bhutan’s existing global leadership in measuring and promoting happiness.
  • Tokenizing Happiness: The idea of tokenizing “happiness” and creating a digital commodity from happiness, allowing the government to extend the GNH framework from just a monitoring tool to one that can incentivize citizens to implement happiness-improving policies.

Conclusion

The conference on digital finance in Bhutan highlighted the potential for innovative financial tools to support the country’s economic development. With the right strategies and technologies in place, Bhutan can promote sustainable growth, reduce poverty, and improve the overall well-being of its citizens.