The land of the thunder dragon, the only nation to have a Gross National Happiness Index and charge tourists a $100/day sustainable development fee, now faces problems like high youth unemployment and brain drain, with even civil servants quitting, owing to low wages.
Civil services or administrative services, otherwise a coveted job in India, Pakistan and other Asian nations, is failing to attract citizens of Bhutan, who are migrating overseas for better livelihood opportunities.
According to a report in Al Jazeera, in response to the high rates of youth employment and emigration, officials resorted to innovative methods, which is where cryptocurrency mining comes into play. Bhutan has spent $100 million worth of Bitcoins to double the salary of its civil servants, in hope that they retain the officers in their country.
The Himalayan Kingdom has been facing financial problems since the covid pandemic times. In the post-pandemic era, there has been a drop in tourism, which contributes more than 10% to its Gross Domestic Product.
The situation has led to a rise in unemployment and skilled and educated youth emigrating to other nations, like Australia. Also, the problem of low wages is doing nothing to retain employees, and there has been a stark rise in civil servants resigning from their jobs.
This region is where Bitcoin and other cryptocurrencies have come to rescue Bhutan. This country has been adding Bitcoins to its holdings. In 2024, blockchain intelligence firm Arkham revealed that Bhutan’s bitcoin holdings have reached $750 million. The amount represents approximately 27.9% of Bhutan’s estimated 2023 Gross Domestic Product of $2.686 billion.
And Bhutan has been using its digital assets to overcome all its financial woes.
Bhutan has been able to achieve this Bitcoin milestone by using its abundant hydropower resources.
Bhutan’s King, His Majesty Jigme Khesar Namgyel Wangchuck has been interested in digital financing and infrastructure for a long time. According to the country’s sovereign investment arm, Druk Holding & Investments, Bhutan entered the Bitcoin mining venture in 2019.
Bhutan’s distinct topography enables the kingdom to locate its Bitcoin mining sites strategically near hydroelectric power plants running on its four main rivers—Amo Chu, Wang Chu, Punat Sang Chu & Mangde Chu—producing a weekly range of 55–75 BTC from their activities.
Bitcoins have been marginally beneficial to Bhutan in retaining civil servants and improving the economy of the kingdom. But whether it’s sustainable in the long run remains to be seen.
Also Read: Exclusive: How India can use its rivers to mine Bitcoin like Bhutan
