Bhutan’s green Bitcoin rush: how a remote Kingdom became a crypto mining pioneer

Nestled high in the Himalayas, the Kingdom of Bhutan has long stood apart from the hustle and bustle of the global stage. But these days, something new is humming in those mountains alongside the prayer wheels: the sound of crypto mining farms. Let’s take a look at how this small, mountainous nation is quietly building a digital future and where Bitcoin fits into the picture.

A transformation from isolation

For centuries, Bhutan intentionally kept itself separate, prioritizing its unique traditions and culture. Getting into the kingdom as a foreigner was famously difficult, and even something as commonplace as television didn’t arrive until 1999!

A big change happened when Jigme Singye Wangchuck stepped up as king. His son, the current King Jigme Khesar Namgyel Wangchuck, has really taken the reins, pushing forward with modernizing the country. Slowly but surely, Bhutan is opening its doors, encouraging tourism, and building connections with the rest of the world.

A key part of this shift is the “Digital Bhutan” program. Think of it as a plan to turn the kingdom into a tech-savvy nation. It includes everything from building better infrastructure and getting government services online to teaching people digital skills and supporting new tech startups.

Then, in 2023, a very interesting secret was discovered: The country of Bhutan had started mining cryptocurrency for itself. Forbes reported, based on information from some bankrupt crypto lenders (BlockFi and Celsius), that Bhutan’s Druk Holding & Investments (DHI) was actually a client of theirs. DHI had invested a lot of money in cryptocurrencies and set up some big mining operations.

DHI, which manages all of Bhutan’s state assets, confirmed that, yes, they were mining Bitcoin. And they have a pretty big advantage: lots of cheap hydroelectric power. This clean, green energy is something they even export to neighboring India. So, these mining farms, running on renewable energy, fit perfectly with Bhutan’s goal of staying carbon neutral.

In 2023 and 2024, the country really ramped things up. Word got out that DHI was teaming up with major international mining companies to create brand-new data centers powered entirely by hydropower.

According to BitcoinTreasuries, Bhutan now holds the fifth-largest Bitcoin reserves in the world, sitting on a cool 12,062 BTC.

Bhutan’s general vibe toward cryptocurrencies is best described as “cautiously optimistic.” While there’s no outright ban on citizens using digital assets, the Royal Monetary Authority (RMA) has definitely warned about the risks – things like volatility and the lack of regulations.

At the same time, Bhutan is seriously digging into the potential of blockchain. Back in 2021, the RMA partnered with Ripple (the American company) to test a digital version of their national currency, the ngultrum, based on CBDC (central bank digital currency) technology. The idea is to make financial services more accessible and cross-border payments more efficient. The RMA has said that this could give 85% of the population (who already have mobile phones) access to financial services.

Besides just the CBDC, Bhutan is exploring how blockchain could be used in other areas, like tracking where our food comes from and managing land records.

“High value, low impact”: the Bhutanese way

For a long time, Bhutan’s tourism policy has been guided by the idea of “High Value, Low Impact.” It’s all about minimizing any negative effects on the environment and the country’s unique culture.

After COVID-19 hit, Bhutan took some major steps to get its tourism sector back on its feet, making some pretty significant changes along the way. A key part of this has always been the Sustainable Development Fee (SDF), a daily fee that goes towards things like building infrastructure, healthcare, education, and protecting the environment.

When the borders reopened in September 2022, the SDF jumped from $65 to $200 per person per day. The goal was to really emphasize that “high value” part and attract wealthier tourists, while also covering the increased costs.

But, to give tourism a bit of a boost and adjust to the new post-pandemic reality, the Bhutanese government announced in September 2023 that they were cutting the SDF back down to $100. This is set to last until August 31, 2027.

Along with this, they’ve made it easier to get visas, and now travelers can book their hotels and tours directly, instead of having to go through official operators.

Bhutan is also putting a lot of effort into developing ecotourism, focusing on giving visitors a chance to really experience the local culture and learn about the idea of Gross National Happiness.

Cautiously opening up

Bhutan’s foreign policy has always been careful, aiming to protect its independence and its unique cultural identity. India remains Bhutan’s most important partner, both historically and today.

The relationship between the two countries covers a wide range of areas, including economic cooperation. India also provides a lot of financial support to Bhutan as part of its five-year development plans.

China is another important neighbor, although Bhutan doesn’t have any official diplomatic offices there. The big issue with China is the ongoing talks about their shared border. But in recent years, there have been more discussions about drawing the line.

In April 2025, the King of Thailand, Maha Vajiralongkorn, visited Bhutan. The visit included Buddhist ceremonies with Jigme Khesar Namgyel Wangchuck. These rituals, with monks from both countries, highlighted their long-standing religious ties.

The fact that Bhutan was chosen for the Thai king’s first foreign visit in decades (the last time a Thai monarch visited Laos was in 1994) is seen as linked to international politics.

“Bhutan is a small, stable country not involved in the US-China conflict. This sets the tone for Thailand’s neutrality,” one diplomat told Nikkei Asia.

Bhutan has also been a member of the UN since 1971 and actively participates in international organizations. In its foreign policy, Bhutan sticks to the principles of peaceful coexistence, mutual respect, and promoting Gross National Happiness, often taking the lead on initiatives for sustainable development and protecting the environment.

Can Bhutan become a tech hub?

Bhutan’s journey to becoming a tech-savvy nation definitely has its challenges. It has limited human resources, the need to build IT infrastructure in a tough, mountainous landscape, the potential for a “brain drain” (talented people leaving), and the challenge of preserving its cultural identity while embracing technology. Plus, relying on hydropower for mining also carries risks related to the seasons and climate change.

Still, Bhutan’s unique approach – combining a love for innovation with that philosophy of Gross National Happiness – is attracting attention from all over the world. Government support for mining and crypto, a focus on protecting the environment, and a balanced approach to regulations could make Bhutan a great example of how a small country can use technology for sustainable development.

Bhutan, after being voluntarily isolated for so long, is now showing that it’s not just trying to catch up but, in some ways, is actually getting ahead of the curve when it comes to technology. It’s no longer a closed-off kingdom but a country that’s finding its own way in the digital world.