The Kingdom of Bhutan and Bitcoin Mining
The Kingdom of Bhutan, a serene Himalayan nation renowned for its spiritual heritage, is exploring Bitcoin mining as a potential solution to its pressing economic challenges, particularly youth migration and unemployment. Amid the backdrop of a significant emigration wave—where more than 10% of the educated youth left the country in 2022—Prime Minister Tshering Tobgay advocates for cryptocurrency mining.
Economic Strategies and Benefits
He asserts that many nations have found financial success through this avenue, remarking in an Al Jazeera interview that Bitcoin mining represents a straightforward strategic choice that could yield substantial financial benefits.
Bhutan’s government has reportedly utilized about $100 million in cryptocurrency sales to enhance civil servant salaries for 2024, indicating a proactive approach to mitigating internal economic distress. The nation’s current Bitcoin assets are estimated by various blockchain analysts to exceed $600 million, constituting roughly 30% of its Gross Domestic Product (GDP). However, the specific amount remains ambiguous.
Environmental Considerations
Notably, Bhutan’s unique advantage lies in its abundant hydroelectric resources, which have the potential to facilitate energy-intensive Bitcoin mining in an environmentally friendly manner. Ujwal Deep Dahal, the head of Bhutan’s sovereign wealth fund, Druk Holdings, emphasized the need for the country to leverage its green energy as part of a diversified investment strategy focusing on cryptocurrency mining.
