Bhutan, known for its Gross National Happiness Index, is facing numerous economic challenges including high youth unemployment.
Employment Issues in Bhutan
The employment situation in Bhutan is becoming increasingly strained. High youth unemployment and mass emigration have led locals to leave the country in search of better opportunities. Even civil servants are choosing to migrate overseas due to low wages.
Cryptocurrency as a Financial Solution
In response to growing employment issues, Bhutanese officials have turned to innovative solutions, including cryptocurrency mining. Reports indicate that Bhutan has spent $100 million on Bitcoin to double the salaries of its civil servants. This measure is also aimed at retaining skilled workers in the country.
Future of Bhutan's Economy
Bhutan's economic difficulties have worsened since the COVID-19 pandemic. The country is suffering from a decrease in tourism, which is a crucial part of its GDP. Cryptocurrency mining has become part of the efforts to improve its financial situation. In 2024, Bhutan's Bitcoin assets were reported to have reached $750 million, approximately 27.9% of the estimated GDP in 2023. However, the long-term sustainability of this approach to economic issues remains in question.
Bhutan is taking steps to improve its economy through cryptocurrency mining, but the success of this approach in the long term is still uncertain.
