Bhutan is strategically leveraging its hydropower resources for cryptocurrency mining, aiming to invigorate its economy and address rising youth unemployment. The country's sovereign wealth fund, which controls the nation's sole power generation utility, has been involved in cryptocurrencies since 2019 and currently holds a substantial Bitcoin stash valued at over $646 million. This strategic move makes Bhutan a notable player in the burgeoning crypto landscape, even going so far as to outpace El Salvador in total Bitcoin holdings.
Prime Minister Tshering Tobgay recently described a booming cryptocurrency mining operation as a no-brainer. He’s sure it’s capable of returning billion-dollar fortunes to the nation. For its part, Bhutan is reportedly considering selling “green” coins, backed by strict environmental, social, and governance criteria. Now they’re vetting bids from the big waiting conglomerates with an eye toward stemming those losses.
Bhutan has taken a positive step in welcoming cryptocurrency mining. This ambitious action arrives as the country confronts severe economic hurdles, particularly dramatic increases in youth unemployment. The rate jumped from 15.9% in 2023 to 19% in 2024, a clear indication of the need for new economic approaches.
Beyond mining, Bhutan is investing in its youth by providing training in blockchain and artificial intelligence technologies, intending to stimulate job growth and diversify the economy. The state is trying to tap into its plentiful hydropower resources to attract Bitcoin miners. This groundbreaking initiative will massively lower the ecological footprint traditionally associated with fossil fuel-powered extractive mining operations. This method not only gives Bhutan the flexibility to move forward with robust economic development, it helps them enhance their environmental mission.
