New Delhi: Bhutan is tapping into its abundant hydropower resources to mine “green” cryptocurrencies as part of a broader strategy to revitalise its economy, create jobs, and curb the growing brain drain among its youth.
Green cryptocurrencies are digital assets minedusing renewable energy sources such as hydro, wind, or solar power, in contrast to those created using fossil fuels. Bhutan’s efforts in this space are spearheaded by its sovereign wealth fund, Druk Holding and Investments Ltd (DHI), which also controls the country’s sole power generation utility.
“We are a nation that runs 100 per cent 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 DHI. “So a coin mined in Bhutan will contribute to the green economy,” he told Reuters.
Bhutan quietly began investing in cryptocurrencies in 2019, using earnings to fund government expenses, including salaries for two consecutive years. Now, the country is looking to scale up, exploring how its sustainably mined digital assets could attract ESG-conscious investors and corporations.
Famed for its alternative development philosophy centred on Gross National Happiness (GNH), Bhutan sees crypto mining not only as an economic opportunity but also as a way to align financial gains with environmental stewardship.
Dahal said Bhutan is also training its youth in blockchain and artificial intelligence to prepare them for future job markets. The move comes amid concerns over youth unemployment and migration. More than 10% of Bhutan’s young population left the country between 2022 and 2023, pushing the youth unemployment rate to 16.5% in 2024.
To support its vision of becoming a global hub for green digital currency, Bhutan is targeting a hydropower capacity of 15 gigawatts over the next 10 to 15 years—up from its current output of around 3.5 gigawatts, and still far below its full potential of 33 gigawatts.
“Bitcoin has not just given more value to hydropower energy, it has also increased access to liquidity in foreign currency,” Dahal noted, highlighting crypto’s potential to diversify Bhutan’s economic prospects.–REUTERS
