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As Bhutan battles youth migration and economic strain, its prime minister says Bitcoin mining offers a path forward, and others should follow.
Bhutan, a Buddhist kingdom on the eastern edge of the Himalayas known for its monasteries, seems to be placing a strong bet on Bitcoin (BTC) as a possible way to ease its economic problems despite the notorious risks linked to the cryptocurrency’s price swings.
In an interview with Al Jazeera, Bhutanese prime minister Tshering Tobgay called state-backed Bitcoin mining “a simple strategic choice that many people have made and earned billions of dollars,” adding that “governments should do it [crypto mining].”
Bhutan is facing several economic issues, including high youth unemployment and a growing number of skilled workers leaving the country. In 2022, more than 10% of the educated population emigrated, the report reads. Some believe Bitcoin is helping reduce that trend as the government reportedly sold $100 million worth of cryptocurrency to raise civil servant salaries in 2024.
You might also like: Bhutan’s new administration region to hold BTC, ETH, BNB as part of strategic reserve
The exact size of Bhutan’s BTC holdings remains unclear, though data from different blockchain analytics firms implies that it could be worth more than $600 million, or about 30% of the country’s GDP.
Bitcoin mining requires large amounts of energy, though Bhutan may actually be an exception as it has plenty of hydropower and cool temperatures. Ujwal Deep Dahal, head of Bhutan’s sovereign holding company Druk Holdings, said it’s “important for Bhutan to capitalize on the green energy we have in terms of mining Bitcoin as a part of our investment portfolio.”
Read more: Bhutan’s Bitcoin holdings surpass $1b
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