Bhutan, known for its natural beauty and unique culture, has unexpectedly become a notable player in the Bitcoin market, having mined 12,000 BTC since 2020. This article explores the kingdom's journey towards technological prosperity.
The Start of Bitcoin Mining in Bhutan
Bitcoin mining in Bhutan began with the initiative of King Jigme Khesar Namgyel Wangchuck, who aimed for technological advancement. Ujjwal Deep Dahal, head of Druk Holding & Investments, proposed to plug high-performance equipment into hydropower grids. Initially, the project appeared unpromising, with two imported rigs in an office in Thimphu, but soon transformed into full-blown mining operations.
Economic Implications of Bitcoin Operations
By 2022, four state-owned mines were operational, and in 2023, the government cashed out $100 million in Bitcoin to fund a salary increase for public sector workers. This helped avert potential talent loss after the tourism crisis and the decline in hydropower exports. However, concerns exist among bureaucrats about secrecy and potential long-term impacts of electricity diversion.
Future of Mining and Bhutan's Crypto Strategies
The Bhutanese government plans to focus on upgrading existing mining rigs and does not intend to open new mines. Special attention is given to the Mindfulness City project, which integrates cryptocurrencies at the municipal level. Thus, Bhutan aims to blend traditional values with modern technology.
Bhutan, once measured by the smiles of its citizens, is now exploring a new economic reality defined by cryptocurrencies, demonstrating how even a small nation can achieve significant strides on the global crypto investment landscape.
