Bhutan to Mine Green Crypto to Boost its Economy
Bhutan is set to become a hub for green cryptocurrencies.
AI and blockchain will generate new jobs, and youngsters will be trained in trading cryptos.
Located between two economic giants, China and India, Bhutan, a small and environmentally conscious Himalayan nation, is exploring its hydropower to mine cryptocurrencies like Bitcoin.
By and large, mining cryptocurrencies involves consuming a large amount of electricity. Oftentimes, much of a country's power comes from unsustainable sources like coal and other fossil fuels.
But Bhutan is doing things differently. The country's nearly all electricity comes from clean hydropower, making cryptocurrency mining in the nation much more sustainable. Thus resulting in "green cryptocurrencies".
Crypto: A New Way to Fuel Economy
Druk Holding and Investments Ltd, Bhutan’s sovereign wealth fund, has been investing in cryptos since 2019 and sees it as a smart way to provide a fillip to the economy and make it more financially stable.
The profits from dealing in cryptos have helped the government pay salaries for two years.
Ujjwal Deep Dahal, the CEO of the fund, Druk Holding and Investments Ltd., said: "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. So a coin mined in Bhutan will contribute to the green economy."
READ MORE: Why Algorand Uses Less Power Than Other Cryptos
Attracting Global Companies
Since the country's coins are created using clean energy, it will attract large corporations that care about environmental, social, and governance (ESG) standards. Government officials say that when these organisations buy Bhutan's "green" coins, it will help them meet their climate goals.
Employment Generation for Youth
Despite these prospects, the country faces unemployment, and its citizens are leaving for better lives abroad. Between 2022 and 2023, over 10% of youngsters left the country. In 2024, unemployment stood at 16.5%.
Given these economic factors, Bhutan plans to train its people in blockchain and artificial intelligence, two prominent skills needed in the digital economy. This, according to the government, will give rise to new job opportunities and keep young talent within the country.
ALSO READ: How to Use Crypto Sustainably
Need more Hydropower
At the moment, Bhutan can produce around 3.5 gigawatts of hydropower. But this is not enough if it desires to become a hub for green cryptocurrency. The country needs to double down on its hydropower generation to 33 gigawatts to fulfill its green ambitions.
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Source: Reuters
