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Why Bhutan Is Banking on Bitcoin to Rescue Its Economy

Bhutan is turning to Bitcoin to tackle economic challenges like youth unemployment and brain drain. Discover how the Himalayan kingdom is using green energy for sustainable crypto mining in a bold bid to reshape its future.

Tucked between economic giants India and China, Bhutan has long stood apart with its emphasis on Gross National Happiness over traditional measures of wealth. But facing mounting economic pressures—from youth unemployment and brain drain to dwindling tourism revenues—this small Himalayan kingdom is turning to a surprising savior: Bitcoin.

Table of Contents

From Happiness to Hash Rates: Why Bhutan Turned to Bitcoin

For years, Bhutan’s economic philosophy has centered on sustainability, cultural preservation, and environmental conservation. Yet recent challenges have pushed the government to diversify and innovate. Bhutan’s landlocked geography and mountainous terrain limit agricultural and industrial expansion. The COVID-19 pandemic further weakened key revenue streams like tourism, contributing to rising unemployment and a sharp exodus of skilled workers.

In this context, Bitcoin emerged not just as a high-risk asset, but as a strategic resource that aligns with Bhutan’s strengths—particularly abundant, renewable hydropower and cold temperatures that reduce mining costs.

How Bhutan Mines Bitcoin Sustainably

Unlike most countries, Bhutan has an enviable surplus of green energy thanks to its hydropower plants. During summer months, increased river flow generates more electricity than domestic needs. Rather than export this excess power at low tariffs, Bhutan channels it into energy-intensive Bitcoin mining.

Bitcoin mining requires solving complex computational puzzles using high-performance computers. This process consumes vast amounts of electricity—a sticking point for many countries concerned about environmental impacts. But in Bhutan’s case, the process is not only carbon-neutral, it is actually aligned with the nation’s climate goals, given that Bhutan is the world’s first carbon-negative country.

Bhutan’s geography helps, too. Its cool climate naturally regulates mining machines, lowering costs tied to cooling infrastructure.

Bitcoin as a Tool for Economic Relief

The shift to Bitcoin is not merely technological—it’s financial triage. The country faces a youth unemployment rate of 19%, and in 2022 alone, over 10% of its skilled workforce emigrated, many to Australia.

This exodus hit Bhutan’s civil service particularly hard. To counter this, in 2023 the Bhutanese government sold $100 million worth of cryptocurrency—primarily Bitcoin—to double the salaries of civil servants. The result: a marked decrease in resignations the following year.

Bhutan’s Bitcoin strategy has turned into a partial bulwark against economic instability, improving public sector morale and potentially slowing brain drain.

How Much Bitcoin Does Bhutan Really Have?

The exact amount of cryptocurrency Bhutan holds remains undisclosed, but blockchain intelligence firm Arkham estimates that as of April 2025, the country’s Bitcoin holdings exceed $600 million, accounting for nearly 30% of Bhutan’s GDP. Bhutan also reportedly holds smaller amounts of Ethereum and LinqAI.

These figures are staggering for a nation with a GDP of just over $3 billion, highlighting how significantly crypto is now tied to the kingdom’s economic well-being.

Gelephu Mindfulness City: Bridging Tech and Tradition

Bhutan’s investment in digital currency is part of a broader vision for future-ready development. The government is building a new economic and administrative hub—Gelephu Mindfulness City—that aims to blend sustainability with technological innovation. The city will feature low-rise buildings, residential zones, national parks, and digital infrastructure to support new industries, including crypto and tech startups.

This approach reflects Bhutan’s desire to modernize without sacrificing its core values of environmental stewardship and cultural integrity.

Risks and Repercussions: Is the Bet Too Big?

While Bitcoin has brought immediate financial relief, Bhutan’s heavy reliance on such a volatile asset is risky. The cryptocurrency market is famously unpredictable, and a significant crash could erode national reserves almost overnight.

Moreover, the lack of transparency in how much Bitcoin Bhutan holds or how it's managed raises questions about fiscal accountability and risk management.

Still, Bhutan’s leadership, including King Jigme Khesar Namgyel Wangchuck and Prime Minister Tshering Tobgay, argue that bold strategies are essential for small nations to stay economically viable in a competitive global environment.

Bhutan’s Bet in Global Context

Bhutan isn’t alone in embracing Bitcoin at the national level. Countries like El Salvador and the United States have established strategic Bitcoin reserves. Even Pakistan is moving in a similar direction, recently appointing Binance founder Changpeng Zhao as an advisor to its newly formed Pakistan Crypto Council.

But Bhutan stands out in how seamlessly it integrates crypto mining with sustainability, positioning itself not just as a tech innovator, but as a global model for ethical crypto economics.

Conclusion

Bhutan’s pivot to Bitcoin is as much about survival as it is about vision. It reflects a calculated gamble by a small but ambitious nation determined to forge its own path. With the world watching, Bhutan may well redefine what it means to be both digitally forward and deeply rooted in tradition.

Whether this gamble pays off remains to be seen. But for now, Bhutan is proving that even in the most remote corners of the Himalayas, innovation knows no bounds.

FAQs

Why is Bhutan investing in Bitcoin?

Bhutan is leveraging Bitcoin as a strategic economic tool to address issues like youth unemployment, brain drain, and declining tourism revenues. By mining Bitcoin using surplus hydropower, the country generates digital income without harming its environment.

How is Bhutan mining Bitcoin sustainably?

The country uses its abundant hydropower and cold climate to run supercomputers needed for mining Bitcoin. This approach aligns with Bhutan’s status as the world's first carbon-negative country.

How much Bitcoin does Bhutan own?

While the government hasn't officially disclosed its holdings, blockchain analysis firm Arkham estimates Bhutan’s Bitcoin reserves exceed $600 million, which is nearly 30% of its GDP.

What economic impact has Bitcoin had in Bhutan so far?

In 2023, the government used $100 million from cryptocurrency reserves to double civil servant salaries, which helped reduce resignations and improve morale in the public sector.

Is Bhutan the only country doing this?

No. Bhutan joins countries like El Salvador and the United States in using Bitcoin as a strategic financial asset. However, Bhutan is unique in combining green energy and sustainability with crypto mining.

That's all for today, see ya tomorrow! If you want more, be sure to follow our X (@croxroadnewsco), Instagram (@croxroadnews.co), Youtube (@thebitcoinlibertarian), Tiktok (@croxroadnews) and nostr - [email protected]

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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