Bhutan, nestled within the Himalayan mountains of South Asia, has surprised the global financial scene with a clandestine revelation: the country has quietly engaged in crypto mining operations for years, a sustainable endeavor set against the backdrop of its picturesque landscape.
What’s even more astonishing is that Bhutan’s approach to crypto mining has been environmentally conscious, setting it apart from the widely criticized energy-intensive methods commonly employed. The nation has harnessed its abundant hydroelectric resources – a renewable energy source – to mine tokens, aligning with a “green” ethos.
Bhutan’s significant hydroelectricity potential, powered by the flow of ancient glaciers feeding its rivers, currently energizes homes for its 777,000-strong populace and contributes 30 percent to the country’s GDP.
However, Bhutan’s well-guarded secret signifies a strategic application of this energy wealth – the establishment of its own crypto mining operations, potentially propelling its economy towards self-sufficiency and prosperity. This endeavor takes a page from El Salvador, the sole country worldwide operating state-owned crypto mines.
Leveraging its unique landscape, Bhutan has recognized the symbiosis between its resources and the crypto mining industry. Its towering mountains facilitate efficient cooling of the heat-producing mining computers while hydroelectricity provides cost-effective energy, possibly rendering the country’s crypto mines virtually carbon-neutral.
Why this clandestine activity and subsequent revelation? The veil of secrecy may have shielded Bhutan’s crypto mining endeavors for years, with specific details surrounding timelines, locations, and earnings shrouded in ambiguity. According to a government representative interviewed by The Bhutanese, the country embarked on mining a few years ago, entering the arena when Bitcoin’s price hovered around $5,000.
With Bitcoin’s price subsequently soaring to $29,228.12, Bhutan might be motivated by a desire to forge partnerships and expand its project. State-owned Druk Holding & Investments (DHI) and Nasdaq-listed mining company Bitdeer are seeking $500 million to develop eco-friendly crypto mining within the kingdom. Fundraising for Bhutan’s carbon-neutral digital mining venture is set to commence in May, marking an ambitious step forward.
While Bhutan charts its course toward sustainable economic growth, its neighboring giants, India and China, remain cautious about the crypto landscape. India’s government and central bank have taken stern measures against it, while China enforced a trading ban on cryptocurrencies in 2021.
