Bhutan, a small Himalayan nation nestled between India and China, is exploring innovative ways to mine and utilize green cryptocurrencies to strengthen its economy, create jobs, and reduce the growing problem of brain drain.
According to Ujjwal Deep Dahal, CEO of Bhutan’s sovereign wealth fund, Druk Holding and Investments Ltd, the country is turning to hydropower as a clean energy source to mine digital currencies and create new economic opportunities, Reuters reported.
What Are Green Cryptocurrencies?
Green cryptocurrencies are digital currencies mined using renewable energy sources, such as hydropower, wind, or solar power, rather than fossil fuels. This makes them an eco-friendly alternative to traditional digital currencies, which are often criticized for their high carbon footprints due to reliance on energy-intensive mining processes.
Bhutan’s Strategic Investment in Cryptocurrencies
Bhutan has already started reaping the benefits of investing in cryptocurrencies, having earned millions of dollars from holdings in some of the world’s most popular digital assets. These profits have even been used to fund government salaries for two years, according to two senior officials in Thimphu, the country’s capital.
“We are a nation that runs 100% on hydropower, and every digital coin we mine in Bhutan using hydropower offsets that coin which gets mined using fossil fuels,” said Dahal. “So a coin mined in Bhutan will contribute to the green economy,” he explained in an interview with Reuters.
Bhutan’s Vision for a Green Economy
The country has been using its abundant hydropower resources to run energy-hungry supercomputers that mine cryptocurrencies and contribute to the global blockchain network. In 2019, Bhutan’s sovereign wealth fund began adding digital currencies to its portfolio, seeing them as a valuable tactical investment and a potential game-changer for the nation.
Bhutan is also exploring opportunities to sell its “green” digital coins to large corporations that need to meet their environmental, social, and governance (ESG) targets. Dahal believes that Bitcoin and other cryptocurrencies have not only increased the value of the country’s hydropower energy but have also provided access to much-needed foreign currency liquidity.
Addressing Brain Drain and Creating Jobs
Bhutan, with a population of just under 800,000, faces a significant challenge with brain drain — the emigration of young, educated people seeking opportunities abroad. According to government estimates, over 10% of the country’s youth left between 2022 and 2023, pushing unemployment in the younger age group to a concerning 16.5% in 2024.
To address this, the Bhutanese government is training young people in blockchain technology and artificial intelligence (AI) techniques, hoping to create jobs in these emerging sectors and encourage young talent to stay in the country.
Expanding Hydropower to Scale Crypto Mining
For Bhutan’s green cryptocurrency ambitions to succeed on a large scale, the country needs to expand its hydropower generation. The current capacity is 3.5 gigawatts, but Bhutan aims to increase this to 33 gigawatts in the future, with 15 gigawatts planned for the next 10 to 15 years.
As Dahal stated, “We have plans to generate 15 gigawatts in the next 10 to 15 years,” which could transform Bhutan into a global hub for green cryptocurrency production.
