Bhutanese Prime Minister Tshering Tobgay recently urged nations worldwide to embrace Bitcoin (BTC) mining.
The Prime Minister believes Bitcoin mining offers a path forward as Bhutan struggles with growing economic pain and youth migration.
Bhutan Going Big on Bitcoin
In an interview with Al Jazeera, Tobgay said state-backed Bitcoin mining is “a simple strategic choice.” He explained that many individuals have grown their wealth from crypto, so Tobgay calls the government to try Bitcoin mining. This transition could propel Bhutan into a leading role globally in embracing financial innovation.
The country is currently facing economic challenges, and Bitcoin mining is among the steps it is taking to recover from the crisis. Bhutan, once an attractive tourist location, is struggling to draw people back to visit since a setback during the COVID-19 pandemic.
Tourism contributes over 10% of the country’s Gross Domestic Product (GDP). In 2023, tourism brought in $334 million, according to Bhutan’s Central Bank. By 2024, only about 150,000 tourists visited the country, Bhutan’s Prime Minister revealed. The declining revenue from tourism has further increased the country’s economic woes.
In addition, youth unemployment is high, causing a growing number of skilled workers to leave the country. Over 10% of the educated population emigrated from the country in 2022. However, Bitcoin is helping reduce the brain drain trend. In 2023, the government reportedly sold $100 million worth of cryptocurrency to raise civil servant salaries.
As highlighted in our previous article, Bhutan holds over $1 billion worth of Bitcoin in its crypto reserve. Since 2019, Bhutan has used environmentally friendly hydroelectric resources to mine Bitcoin via Druk Holding and Investments (DHI), the national investment company.
Blockchain data firm Arkham Intelligence suggested that Bhutan also holds other cryptocurrencies, including Ethereum and LinqAI. As noted in our earlier post, Bhutan’s GMC revealed plans to include Bitcoin, Ethereum, and Binance Coin in its strategic reserves.
Other Nations Delving Into Bitcoin Mining
Meanwhile, Bhutan is not the only country promoting and expanding initiatives for Bitcoin mining. As we covered in our latest report, some individuals uncovered a Bitcoin mining operation in a remote northwest region in Zambia.
The mine taps the hydroelectric power generated from the Zambezi River to produce new blocks. It is also reported to operate in a trove of 120 computers. Currently, the facility provides power to around 15,000 people.
Besides Zambia, Pakistan is also considering exploring Bitcoin mining, as we discussed earlier. This endeavor would reduce the financial burden on the energy sector. The Ministry of Energy is actively discussing with various stakeholders to design special electricity tariffs for emerging sectors like crypto mining.
Electricity is oversupplied in many parts of Pakistan due to the underutilization of power plants. Thus, Bitcoin mining could serve as a smart way to capture the excess electricity.