Bhutan, a small Himalayan country, is exploring the use of green cryptocurrencies to strengthen its economy and create job opportunities. The government plans to use its abundant hydropower resources to mine digital currencies and address the issue of brain drain.
Green cryptocurrencies are mined using renewable energy sources, such as hydro, solar, and wind power, instead of fossil fuels. Bhutan, which already operates entirely on hydropower, aims to leverage its clean energy to generate digital coins. These coins are expected to support the country’s green economy.
In recent years, Bhutan has earned millions of dollars by investing in popular cryptocurrencies. The profits have been used to fund government salaries for two years, according to senior officials in Thimphu, the capital.
Ujjwal Deep Dahal, CEO of Bhutan’s sovereign wealth fund, Druk Holding and Investments Ltd, explained, “Every digital coin mined in Bhutan using hydropower offsets coins mined using fossil fuels. A coin mined here will contribute to a green economy.”
The fund started adding cryptocurrencies to its portfolio in 2019, viewing them as a strategic investment. Bhutan is known for its Gross National Happiness (GNH) index, which measures factors such as sustainability and well-being, beyond traditional economic indicators like GDP.
The country is using its hydropower to operate supercomputers that mine cryptocurrencies. Bhutan is also exploring the idea of selling these “green” coins to large companies seeking to meet their environmental, social, and governance (ESG) goals.
Bitcoin mining has not only increased the value of Bhutan’s hydropower energy but has also improved the country’s access to foreign currency. Dahal noted that training the youth in blockchain and AI could help reduce unemployment, especially among educated young people, who have been leaving the country in large numbers.
Bhutan faces a significant challenge as many of its young citizens seek opportunities abroad. Between 2022 and 2023, over 10% of its youth emigrated, raising youth unemployment to 16.5% in 2024.
The government’s ambitious plan to become a leader in green cryptocurrency hinges on expanding its hydropower generation. Bhutan plans to increase its capacity from 3.5 gigawatts to 33 gigawatts. In the next decade or so, the country aims to generate 15 gigawatts of power to support its green cryptocurrency ambitions.
Bhutan hopes that by developing green cryptocurrency, it will not only boost the economy but also create sustainable job opportunities for its young population.
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