Bhutan has built significant Bitcoin reserves to support its economy, utilizing hydropower for mining.
Bitcoin as an Economic Support Tool
Since 2019, Bhutan has accumulated substantial Bitcoin reserves, valued at over $1.1 billion. These reserves help fund state expenses such as public sector salaries, healthcare, and environmental initiatives. Bitcoin use enables balancing budget deficits and investing in national development. Mining, supported by abundant hydropower resources, positions Bhutan among the leading government Bitcoin holders.
Selling BTC for Financial Stability
To maintain liquidity, Bhutan has at times offloaded portions of its Bitcoin reserves. A recent sale of 367 BTC, amounting to $33.5 million on Binance, was used to meet short-term financial obligations like government salaries. Despite this, the country is resolved to maintain significant Bitcoin reserves as a long-term strategy and plans to expand mining capacity to 600 megawatts.
Bhutan's Bitcoin Success Strategy
Bhutan's successful strategy in using Bitcoin can serve as a model for other small nations. With natural resources and integration with emerging financial technologies, Bhutan demonstrates that Bitcoin can be an economic pillar, not just an investment vehicle. The Prime Minister emphasizes that Bitcoin is not just a digital currency but a decentralized finance tool for funding government operations.
Bhutan demonstrates the potential benefits of using Bitcoin to strengthen its economy and reduce reliance on traditional sectors.
