Bhutan has become the third-largest Bitcoin holder by a state, with a stash of nearly $1.3 billion since 2020. This sector now produces almost 40% of the country’s gross domestic product, a sign of a basic shift in national policy.
It was King Jigme Khesar Namgyel Wangchuck whose thoughts initially instigated the effort, considering how technology would facilitate Bhutan’s economic growth. It caught on because Bhutan had surplus hydropower, making mining efficient as well as environmentally feasible.
Mining began under the cover of the COVID-19 lockdown with two machines at a remote mountain location. First mine was inaugurated by project leader Ujjwal Deep Dahal and a team of his colleagues near Dochula Pass amidst an early technical hitch.
The nation had expanded to four state-owned mines by 2022 as prices of Bitcoin increased from $10,000 to nearly $100,000. The rise of reserve value financed increases in pay of civil servants and mitigated the economic impacts of declining energy export earnings.
Bhutan expands Bitcoin mining, partnerships, and adoption
However, Bhutan established a completely new firm, Green Digital, solely to manage its mining projects and build its digital financial platform. Satellite photographs indicate at least six mines are operational now, although the government has yet to publish all of the operation specifications.
To support its efforts, Bhutan partnered with Bitdeer Technologies, which built two new mines and pays in U.S. dollars. This payment method has allowed Bhutan to boost its foreign currency reserves, a key goal for long-term economic resilience.
Bhutan will now aim to retain its Bitcoin, refurbish existing mine facilities, and not add any fresh mining facilities into the foreseeable future. It inaugurated a tourism payment platform accepting cryptocurrencies in May, with over 100 digital currencies as payment for services as well as movement.
It is looking at incorporating crypto into Gelephu Mindfulness City, with cryptocurrencies helping with day-to-day transactions. Bhutan’s way of fusing tradition with innovativeness has strongly established it on the map of the global crypto economy.
