Bhutan Eyes Green Crypto Mining to Boost Economy and Create Jobs
Bhutan is actively exploring the potential of mining eco-friendly cryptocurrencies powered by its abundant hydropower resources, aiming to stimulate its economy and generate employment to curb the growing exodus of its young workforce, according to the CEO of its sovereign wealth fund.
Green cryptocurrencies refer to digital assets mined using renewable energy sources—such as hydro, wind, or solar—rather than fossil fuels. Nestled between India and China, the Himalayan kingdom has already earned millions of dollars from investments in top cryptocurrencies. Two senior officials in Thimphu revealed that these earnings even helped cover government salaries over the past two years, as reported by Reuters.
“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 Ujjwal Deep Dahal, CEO of Druk Holding and Investments Ltd., Bhutan’s sovereign wealth fund.
“So a coin mined in Bhutan will contribute to the green economy,” he told Reuters on Tuesday.
The fund, which oversees Bhutan’s sole power generation utility, began investing in crypto in 2019, viewing digital assets as both a tactical move and a transformative opportunity for the country.
Bhutan, known for its Gross National Happiness (GNH) index—a unique measure of economic and social well-being—utilizes hydropower to run the supercomputers needed for blockchain mining.
Officials are now considering whether Bhutan’s “green” crypto could attract large companies seeking to meet Environmental, Social, and Governance (ESG) benchmarks.
“Bitcoin has not just given more value to hydropower energy, it has also increased access to liquidity in foreign currency,” Dahal noted. He added that training youth in blockchain and AI would help create new job opportunities.
With a population of roughly 800,000, Bhutan is struggling with the outmigration of skilled youth. Government data shows that over 10% of young citizens left the country between 2022 and 2023, driving youth unemployment to 16.5% by 2024.
Analysts believe Bhutan’s ambitious goal of becoming a green digital currency hub hinges on scaling up its hydropower output—from the current 3.5 gigawatts to a potential 33 gigawatts.
“We have plans to generate 15 gigawatts in the next 10 to 15 years,” Dahal added.
