Bhutan uses $660 million Bitcoin reserves for national growth

Bhutan’s Prime Minister Tshering Tobgay has highlighted Bitcoin (CRYPTO:BTC) mining as a strategic economic decision, leveraging the nation’s hydropower resources to build a $660 million Bitcoin reserve.

The move has positioned Bhutan among the top five government Bitcoin holders globally, alongside countries like the United States and China.

In an interview with Al Jazeera, Tobgay explained how excess hydropower during summer months allows Bhutan to mine Bitcoin sustainably.

“It’s just a simple strategic choice that many people have made and earned billions of dollars, and I think governments should do it,” he stated.

The revenue from Bitcoin mining has been used to finance public sector salaries, healthcare, and environmental projects.

In 2023 alone, Bhutan sold $100 million worth of cryptocurrency, enabling a doubling of civil servants’ wages and reducing brain drain from government positions.

Bhutan’s approach aligns with its commitment to environmental sustainability.

The country’s constitution mandates that at least 60% of its land remain under forest cover, ensuring that Bitcoin mining operations powered by hydropower remain carbon neutral.

The strategy has also helped Bhutan reduce reliance on traditional industries like tourism, which were severely impacted by the COVID-19 pandemic.

Analysts view Bitcoin mining as one of the few industries capable of driving economic growth while adhering to Bhutan’s environmental values.

Bhutan’s investment in digital assets extends beyond mining.

The Gelephu Mindfulness City, a special administrative region, recently announced plans to include Bitcoin, Ethereum (CRYPTO:BTC), and BNB (CRYPTO:BNB) in its strategic reserves to enhance economic resilience.

Globally, Bhutan’s model is gaining attention as other nations explore similar strategies.

While El Salvador pioneered Bitcoin adoption as legal tender, Bhutan’s focus on sustainable mining presents a unique approach to integrating cryptocurrency into national financial systems.

 At the time of reporting, the Bitcoin (BTC) price was $85,803.22.