Bhutan is heading toward the next level of the crypto revolution and is currently focusing on strategic bets on digital assets and green Bitcoin mining operations to become a leader in the crypto space.
Bhutan known for its focus on Gross National Happiness, has quietly emerged as a surprising player in the global crypto adoption landscape.
Bhutan just added Bitcoin to its strategic reserves.
Looks like the happiest country on Earth just got a lot harder to rug. pic.twitter.com/aKnwChZvoe
— The ₿eliever (@Visit_Crypto089) January 8, 2025
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Just a few days ago, Gelephu Mindfulness City (GMC) made highlights with a very bold statement regarding its strategic reserves of Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB). The GMC officials signal that they are with their nation’s seriousness to adopt cryptocurrencies & integrate cryptocurrencies into its economic framework.
It is a very bitter fact that the crypto sector is still in a hostile environment in the majority of jurisdictions across the world. Bhutan’s forward-thinking adoption of cryptocurrencies, alongside its green energy-driven Bitcoin mining operations, could act as a very big catalyst to initiate a competition among pro-crypto nations like El Salvador and the United States.
As Bhutan strengthens its footprint in this innovative space, it positions itself to become a centre for crypto & blockchain investment & innovation at the global level.
With this report we delve into Bhutan’s crypto adoption journey, compare its strategy to other ProCrypto countries leading the crypto charge, and study its potential for attracting future crypto investments and shaping a sustainable, crypto-driven economy.
Crypto Investments and Sustainable Green Mining Strategy in Bhutan
Bhutan’s journey into the world of cryptocurrencies began quietly but decisively. In 2019, the Bhutanese government’s investment arm, Druk Holding & Investments (DHI), officially stepped into the Bitcoin mining activities, but the Bhutan government officially announced it in 2021.
As per information provided by DHI officials, mining of Bitcoin has been continuously going on since 2019 & this is entirely dependent on hydroelectric energy, which means the country heading toward Bitcoin earning via clean energy which is currently the vision of every Bitcoin enthusiast, as Bitcoin was criticized by many critics for its high energy consumption & carbon footprints because of the dependency of mining operations on unsustainable sources of energy.
Mining Bitcoin with hydropowerplant-based energy sources made this country the most environmentally friendly Bitcoin miners in the world, and there are huge chances that new companies may look toward this abundant resource of this Himalayan country to mine Bitcoin & establish crypto-related businesses.
As per reports Bhutan has mined over 13,000 Bitcoins, with a current market value exceeding $750 million. Currently, this country holds a net of 13,029 BTC, valued at $1.23 billion at the current trade price of Bitcoin.
Unlike countries like Russia and Kazakhstan, dependent on fossil fuels, Bhutan’s vision to mine Bitcoin completely aligns seamlessly with its green sources of energy, setting an example for Bitcoin haters that Bitcoin can coexist with sustainability.
Over several years, Bitcoin mining has faced criticism for its carbon footprint; Bhutan’s renewable energy-based model offers a blueprint for eco-friendly blockchain operations.
Bhutan’s Crypto-Friendly Hub Gelephu Mindfulness City (GMC)
Gelephu Mindfulness City (GMC) has taken Bhutan’s pro-crypto approach a step next by further officially adding Ethereum ($ETH) and Binance Coin ($BNB) in its strategic reserves, along with Bitcoin ($BTC).
This city is mainly designed to be a model city that balances economic growth, mindfulness, and sustainability. This is just like the Dubai of Bhutan kingdom. By adopting crypto & blockchain into the country’s traditional financial environment, GMC aims to attract Crypto companies that are looking for a progressive & pro-crypto regulatory environment and easy access to green sources of energy for Bitcoin mining operations.
Many experts noted that the city’s decision to hold these crypto assets reflects a growing recognition of their role in the future of digital finance. With large market capitalizations, high liquidity, and robust blockchain infrastructures,
It is worth it that GMC initially showed an inclination toward Bitcoin, Ethereum, and Binance Coin, high market cap assets that offer stability and growth potential.
Crypto experts believe that GMC’s embrace of these selected cryptocurrencies could serve as a catalyst for further investments in other Cryptocurrencies as well as crypto projects to diversify investment in this space. For example, they may go for investment in decentralized finance (DeFi), non-fungible tokens (NFTs), and blockchain infrastructure projects.
Bhutan vs. El Salvador and the USA: Bitcoin Adoption Race
El Salvador
El Salvador, a country in Central America, made headlines across the world in 2021 with Bitcoin adoption. Under the presidency & leadership of the country’s president Nayib Bukele, El Salvador adopted Bitcoin as a legal tender.
President Bukele’s bold move aimed to reduce the country’s dependency on the U.S. dollar, but in reality, this decision was a game changer in other ways. The country’s ProBitcoin decision attracted crypto entrepreneurs and tourists from around the world.
The El Salvador government also launched a state-backed Bitcoin wallet, Chivo, and announced plans for a “Bitcoin City” powered by geothermal energy from volcanoes. Just a few weeks ago, this country introduced some limits on the country’s ProBitcoin approach, following a loan deal with the IMF body.
Here we need to know that Bhutan, following El Salvador, has a similar focus on renewable energy use for Bitcoin mining operations, but the country’s strategy differs in key ways. El Salvador relies on external partnerships for its geothermal-powered Bitcoin mining but Bhutan’s hydropower resources are already well-developed and integrated into its economy & not dependent on any external partnerships. Experts believe that Bhutan’s Bitcoin adoption approach may be perceived as less risky compared to El Salvador’s full embrace of Bitcoin as currency.
United States
The United States is home to the largest share of global Bitcoin mining operations. In particular, the US state of Texas is mainly known as a hub for Bitcoin mining companies because cheap energy and favourable regulations make it easy for companies to run operations. The whole crypto community knows very well that the crypto sector faced untested regulatory heat because of the forced crypto regulatory approach by the Securities and Exchange Commission (SEC). The SEC body scrutinizes cryptocurrency exchanges and crypto tokens badly under the leadership of its chairman Gary Gensler, but still, the country remains a centre for blockchain innovation, with Silicon Valley and New York hosting numerous crypto startups. In 2022-23, the situation was very bad for the companies to run their crypto business, as many banks distanced their banking services from the crypto companies, but now the situation has changed, as many political leaders, including the US president-elect Donald Trump, praised the Bitcoin & crypto sector as an opportunity.
If we compare USA & Bhutan, then we will find that Bhutan has a better environment for crypto companies to run crypto-related operations. As per reports, U.S.-based Bitcoin miners face several challenges related to mining operations as well as changes in tax rules. In particular, miners reported that they faced significant challenges because of fluctuating energy prices and political debates over crypto’s environmental impact. So here we can say that Bhutan’s stable hydroelectric power ecosystem provides a much predictable, low-cost solution, for Bitcoin mining companies. And also Bhutan’s strategic reserve holdings mirror sovereign wealth fund strategies, offering long-term financial stability rather than short-term speculation.
Bhutan’s Competitive Advantages
Because Bhutan enters into the Bitcoin sector with significant holding, the majority of the other countries are considering following a similar approach, even at a small level, to remain in this race. In the last 2 months, many current & former government officials in different jurisdictions proposed the idea of Bitcoin investment as a reserve asset. Amid this Bitcoin adoption race, Bhutan may get a better advantage over other countries, in terms of attracting global crypto operations investment because of multiple reasons.
1) Abundant Green Energy
Bhutan depends on hydroelectric power to complete its nearly 100% electricity, unlocking this country as an environmentally sustainable Bitcoin mining jurisdiction. This is a major selling point as the crypto industry increasingly prioritizes green solutions.
2) Regulatory Clarity and Support
Unlike many countries that have imposed strict regulations or outright bans on digital assets, Bhutan’s friendly approach to this sector signals a willingness to embrace blockchain technology within a smooth, regulated framework. This is a very big angle for companies to get started or shift to Bhutan for tension-free crypto business operations. Such developments may further attract crypto entrepreneurs to start their startups in this country.
3) Strategic Reserves of Cryptocurrencies
By investing in Bitcoin, Ethereum, and Binance Coin in its reserves, the Bhutan government showed its confidence in the long-term potential of cryptocurrencies. Country’s this strategic decision could inspire other countries to explore similar reserve diversification.
4) Geopolitical Neutrality
Many crypto entrepreneurs noted that Bhutan is very far from political conflicts, over other countries, making Bhutan’s jurisdiction an attractive ecosystem for global crypto firms seeking refuge from regulatory uncertainty in larger markets like the U.S. and China.
Bhutan’s Future Investments in Potential Cryptocurrencies
As we know, Bhutan has been continuously expanding its crypto portfolio since 2019; it may consider investing in emerging Cryptocurrencies that align with its sustainability goals and economic vision. However, no direct hint from Bhutan came regarding their decision for other cryptocurrencies, but some crypto experts predicted some potential candidates.
Solana (SOL)
This Cryptocurrency is mainly known for its energy-efficient proof-of-stake (PoS ) mechanism and fast transaction speeds. After Ethereum, the Solana network is the top blockchain network at which a very big crypto Defi ecosystem is running. So there are chances that Solana could complement Bhutan’s crypto investment strategy.
Cardano (ADA)
This crypto network is not as popular as the Solana blockchain, but the vision of this crypto project aligns with Bitcoin’s fundamentals. With a strong focus on sustainability and decentralized finance, Cardano aligns well with Bhutan’s values and development goals. There are huge chances that Bhutan may show interest in Cardano’s $ADA coin.
Stablecoins (USDC, USDT)
Some experts believe that holding stablecoins could provide Bhutan with liquidity and stability, mitigating volatility risks associated with other cryptocurrencies. However, these may not be a country’s part of crypto investment, but these stablecoins could be great tools to purchase Cryptocurrencies, for this country.
Bhutan’s Vision for a Crypto-Driven Economy
By including all the factors regarding Bhutan’s investments in cryptocurrencies and its sustainable mining operations, we can’t say that Bhutan is heading toward this crypto sector with only financial decisions; they reflect a broader vision of technological innovation and economic diversification.
Bhutan’s strategic embrace of blockchain technology aligns with its focus on Gross National Happiness, emphasizing sustainable development, social equity, and environmental stewardship.
By positioning itself as a pro-Bitcoin country, this country can attract blockchain startups and DeFi projects. Crypto investment decisions by Gelephu Mindfulness City offer a tangible example of how Cryptocurrencies can be integrated into urban planning and economic policy.
Conclusion
Bhutan’s crypto adoption journey represents a very bold, highly sustainable, and forward-thinking approach that sets it different from other countries.
While El Salvador and the United States are stepping toward Bitcoin & crypto adoption, Bhutan’s unique combination of renewable energy, crypto regulatory clarity, and strategic investments could make it a global top leader in the Bitcoin sector. As this new volatile money market is evolving, Bhutan’s model may inspire other countries to reconsider their approach to crypto technology and sustainable innovation.
Read also: Kenya announces plan to legalize Bitcoin & Cryptocurrencies!
After BNB, BTC, and ETH: Bhutan Government Sets Eyes on Emerging Crypto Investments
