Can Bitcoin save the faltering economy in Bhutan? | Business and Economics News

For years, Bhutan measured her economic and social development using uncommon currencies: happiness and sustainability.

But amid increasing economic pain and patience of minds, the small, non -coastal kingdom Kingdom of Himalayas adopts a new slogan for progress, which pushes Potan to a leadership role, globally, in adopting financial innovation: Bitcoin.

Bhutan is located between India and China, the first country in the world to become a negative carbon – fills millions of dollars in the most popular cryptocurrency in the world in recent years, making an economic bet that has almost no other country.

So why are Bhitan big on bitcoin? How to minimize the intensive currency of the intense energy? How much wealth in Bitcoin keeps the country? It is a risky step, given Wild fluctuations in prices That the digital currency has witnessed over the years?

What is Bitcoin and how do you displeasure it?

Bitcoin is the first decentralized encrypted currency, created in 2008. It is not controlled by any government.

People can buy and sell encrypted currencies like Bitcoin, and these transactions are registered on the joint professor’s book called Blockchain. Bitcoin has a value because there are a limited number of bitcoin currencies that can be found on Blockchain, about 21 million. Most of these coins are extracted and nearly a million.

Bitcoin Mining is the process by which the new Bitcoins is officially added to Blockchain. To Bitcoin Mines, the supercar computer needs to solve a complex puzzle. This adds a new digital currency to trading.

How is Bitcoin Potan Mining?

Electrical energy plants in Bhutan nourish the high computers that solve the complex problems that are rewarded with bitcoin, which can be added to Blockchain.

“It is just a simple strategic choice made by many people and got billions of dollars, and I believe that governments should do so,” said Bootani Prime Minister Chering Tupay to Bernard Smith in the capital.

Tobgay explained that during the summer months, there is more water flowing and the generation of electromatic energy plants too much.

“This is the place where bitcoin mining is very logical,” said Tobgay.

Why Bhutan faces an economic crisis?

The country is in the midst of the increasing economic challenges, and bitcoin mining is among a group of steps taken by a nation of 800,000 people to get out of the crisis.

There is no outlet in the country, and although slightly more than 38,000 square kilometers (14672 square miles) – they are large like Switzerland, most of this land is not able to cultivate due to its mountainous terrain. Bhutan imports most of her food from India, which Tobgay described as “the closest friend and neighbor in the kingdom.”

The International Monetary Fund (IMF) estimates the GUTAN GDP (GDP) to be 3.52 billion dollars in 2025. Accordingly, tourism is about 3.4 percent in the country’s gross domestic product. However, after Covid-19 rocked the industry, Bhutan struggled to restore people to visit its mountains, forests and Buddhist shrines.

Bhutan has always controlled the number of tourists he hosts to ensure that its virgin environment is not affected by a lifetime box than it could be managed. It receives sustainable development fees of $ 100 for foreign tourists. The only exception to this rule is tourists from India, who must pay $ 15. Tobgay says the vision behind this is to attract tourists “high -value and low -sized.”

But now, Bhutan is fighting for limited numbers of tourists you want. According to Tobgay, the country can host about 300,000 tourists every year.

“Last year, I think about 150,000 tourists visited,” the Prime Minister said.

The youth unemployment rate in Bhutan was 19 percent in 2024. The global youth unemployment rate was 13.6 percent, according to the World Bank.

How can Bitcoin Bhutan help fight its economic challenges?

One of the most powerful symptoms of Bhutan’s crisis is the exit of youth and learners of other countries in recent years – and their departure only includes the country’s economic conflict.

In 2022 alone, More than 10 percent The population of the skilled and learners in the country left. Australia, one of the main destination countries, has witnessed more than twice more than twice in five years between 2016 and 2021.

“We have jobs in Bhutan, but they cannot compete against wages that they can win elsewhere in developed countries.”

This pirate also exhausted civil services in Bhutan. There was a sharp increase in civil service employees that have left the regime services since 2019, with the continued number of civilian employees in the increase until 2023, according to the BBS broadcasting service in April 2024.

This is the place where Bitcoin, as an economic resource, in 2023, helped the Bootting government sold $ 100 million of cryptocurrency to double the salaries of civilian employees, Smith Al -Jazeera said of Thimphu.

Since then, BBS has reported a marginal decrease in civil service employees who have left their jobs. In the first quarter of 2024, 500 civilian employees resigned, compared to nearly 1900 who resigned in the same period in 2023.

How much bitcoin carries Bhutan?

Bhutan has not officially revealed how much he carries in the cryptocurrency.

However, according to Blockchain Intelligence Arkham, Bitcoin Holdings deserves More than 600 million dollars As of April 9, about 30 percent of the Kingdom’s gross domestic product.

Arkham data indicates that Bhutan also carries other encrypted currencies, including Ethereum and Linqai. Although the kingdom’s property of these currencies is much smaller than that special Bitcoin.

The King of Bhutan, Jgami Katar Namjeel and Wangsuchk, ​​called for investing in digital infrastructure.

“Being a small nation makes us a smart nation – this is not out of choice but out of necessity,” the king said in the 2019 speech. “Technology is an indispensable tool that will be necessary to achieve this ambition.”

Do you mining Bitcoin in a sustainable Bhutan?

Analysts say bitcoin mining is one of the few projects that allow Bhutan, constitutional monarchy, to develop its economy while in line with its values ​​as a country.

“The number of private sector investments flowing into Bhutan is very limited due to the restrictions that come with the authorization of Bhutan to keep about 60 percent of the forest cover and focus on happiness and preserving the environment instead of embracing manufacturing quickly (or gaps,”, a joint colleague in the corridors in New Delhi (or. ”

This restriction is also something that Prime Minister Tupay spoke.

“We have realized that we are very careful about foreign direct investment,” said Topjay. “We were keen to allow industries that would harm the environment, which would pollute air, which would undermine our culture.”

What Bhutan possesses is a natural environment and resources that lead to cryptocurrency mining.

Capital, thymoto and other regions have cold temperatures, which reduces the need to excessive use of cooling systems needed to prevent high -temperature computers. The average temperature in the country remains between 15-30 ° C (59-86 degrees Fahrenheit) throughout the year, according to the data of the World Bank.

The country also produces more electrical energy than it consumes.

“It is important for Putan to take advantage of the green energy that we have in terms of bitcoin mining as part of our investment portfolio,” said Ujwal Deep Dahal, CEO of Druk Holding and Investments, ARM Commercial and Investment of the Royal Government in Bhutan.

Bhutan does not export hydroerer to India. But bitcoin mining gives Bhutan an alternative to export. Where the tariff rates are good, it sells the strength of India. In projects where the rates are not good, Bhutan maintains strength and uses them to extract bitcoin instead, explained by Chevamorothy.

“Instead of export [hydropower] At a very cheap rate, we use it to extract bitcoin in the high mountains of Bhutan. “

Besides Bitcoin Mining, the country builds a private administrative area and an economic center, Geeiphu Mendfssion City, to combine its proverb and luxury with commercial growth. The city is a project for urban development with low -height buildings, sustainable companies, residential areas, a national and wildlife park.

Are other governments mining bitcoin?

While governments were cautious about Bitcoin in their early days, many of them are now Change their approach.

On March 6, US President Donald Trump was established Bitcoin strategic reserves. Besides the United States, El Salvador has approximately $ 550 million in Bitcoin, the government announced on March 5.

Other governments, such as the Central African Republic and France, began to recognize bitcoin as a legal tender.

On April 7, Pakistan appointed Changpeng Zhao, the founder of Binance, the largest exchange of cryptocurrencies in the world, as a file Pakistan Cheap Consultant (PCC), An organizational body was created in March, where the country is trying to place itself as a driver in South Asia.