Since 2020, Bhutan has been mining Bitcoin worth $1.3 billion, utilizing its excess hydropower energy. This initiative aims to bolster national reserves and address economic challenges.
Bitcoin Mining in Bhutan
Bhutan has quietly accumulated Bitcoin since 2020, utilizing its excess hydropower for mining. The country has mined 12,000 Bitcoins valued at $1.3 billion.
Role of Druk Holding and Government
The mining operations are managed by Druk Holding and Investments under the leadership of Ujjwal Deep Dahal. The initiative was directed by King Jigme Wangchuck and aims to leverage the country's hydropower resources for economic reinforcement. Dahal stated, "You don’t want to waste a day of mining, once you have the machines."
Economic Implications and Prospects
The Bitcoin mining venture significantly offsets declining hydropower revenues, ensuring financial stability. The strategic use of digital assets aids in bypassing economic challenges, with a portion of public funds financing civil sector pay hikes amounting to $100 million. This reflects a calculated shift in the monetary policy of the country towards cryptocurrencies.
Bhutan's Bitcoin mining reflects the potential for leveraging national resources to improve economic conditions. This effective strategy may serve as a model for other nations seeking to diversify their financial reserves.
