Bhutan, a small Himalayan country between India and China, is known for being carbon-negative and measuring progress through happiness rather than GDP. Yet the nation faces economic challenges, including young skilled workers leaving and declining tourism revenues.
To tackle these problems, Bhutan has turned to Bitcoin. Using surplus hydropower, the country runs supercomputers to mine Bitcoin, generating millions in revenue. In 2023, the government sold $100 million in Bitcoin to double civil servants’ salaries, helping slow the brain drain and retain workers.
Tourism, which contributes around ten percent of GDP, has struggled since COVID-19, and Bhutan relies heavily on food imports from India. Estimates suggest the country now holds over $600 million in Bitcoin, about 30% of its GDP, with smaller investments in cryptocurrencies like Ethereum. King Jigme Khesar Namgyel Wangchuck emphasizes that digital technology is vital for the country’s future.
Bitcoin mining aligns with Bhutan’s sustainability goals. Cool temperatures reduce energy for computer cooling, and surplus hydropower is used efficiently rather than sold cheaply to India. Bhutan is also building Gelephu Mindfulness City, a sustainable urban hub combining economic growth with environmental care.
For Bhutan, Bitcoin is not just a speculative asset; it is a tool to boost the economy, pay civil servants, support technology, and strengthen the nation’s financial resilience.
Doku: Bhutan mines bitcoin to offset declining tourism revenue, fund economic growth
Bhutan has been utilizing Bitcoin to fund its economic development. The country’s former Prime Minister, Tshering Tobgay, highlights the use of Bitcoin for public good, including providing free healthcare and financing the salaries of public servants.
The video explains that Bhutan has established Bitcoin mines powered by hydroelectricity, making the operation carbon-neutral. This venture has been highly profitable, generating millions of dollars worth of Bitcoins weekly. Given its limited options for economic growth, Bhutan’s sovereign holding company sees Bitcoin and other emerging technologies like AI and blockchain as crucial for the country’s economic future. The Prime Minister expresses a belief that the world is moving towards adopting Bitcoin as a standard currency.