Bhutan is actively developing a Bitcoin mining initiative utilizing its hydropower capabilities, which is becoming a key aspect of the country's economic growth.
Bhutan's Bitcoin Mining Initiative
Bhutan's sovereign investment arm, Druk Holding & Investments, leads a sustainable Bitcoin mining initiative. Since 2020, the country has mined over 12,000 bitcoins, representing about 40% of Bhutan's GDP. Key figures in Bhutan, such as Damcho Dorji Dahal, emphasize the importance of using renewable energy. "Bitcoin is a parallel to digital gold," Dahal stated, underpinning the country's broader economic strategy with this cryptocurrency investment.
Economic Impact and Global Ranking
The economic impact of Bhutan's mining operations is significant. Weekly yields of 55 to 75 BTC translate into multi-million dollar revenues. Bhutan ranks third globally among government Bitcoin holders. Partnerships with major mining pools, including AntPool, ensure efficiency and sustainability. In parallel to Bitcoin mining, the nation has explored cryptocurrency trading, including stablecoins and Ethereum, although the crypto lending downturn led to more cautious approaches.
Sustainability and Future Outlook
Bhutan's experience mirrors other nations but emphasizes sustainability. For instance, El Salvador also embraced Bitcoin as legal tender. Bhutan's model focuses on offsetting environmental concerns through hydropower integration. Lessons from past crypto lending platform bankruptcies led to a strategic pivot in trading practices. The future outlook for Bhutan's crypto strategy appears promising, with the potential for harnessing green energy in mining to inform other policy decisions. Increased financial inclusion and technological advancement are also expected outcomes.
Bhutan, with its Bitcoin mining initiative, demonstrates how to blend sustainable practices with economic diversification, which could serve as a model for other countries.
