Bitcoin Central to Bhutan’s Ambitious Investment Strategy
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Bhutan’s government is actively working to attract investors and diversify its economy. Beyond its renowned Gross National Happiness index, the nation aims to leverage its clean energy and designated economic zones to create jobs domestically. However, it faces numerous challenges ahead.
Brain Drain in Bhutan
Recent statistics indicate that approximately 13,500 Bhutanese—1.6% of the nation’s population of fewer than 800,000—relocated to Australia in 2023. This significant outflow reflects a trend where young talent seeks opportunities in larger markets. It leaves Bhutan lacking in skilled workers during a crucial time for fresh ideas and entrepreneurial energy. Geographically, being landlocked between India and China complicates logistics, making transportation and infrastructure projects more costly and time-consuming.
Hydropower Fuels Ambitious Initiatives
Electricity generated from rivers is Bhutan’s primary export. Currently, the nation boasts 2.5 gigawatts of hydropower, with an additional 3 GW under construction. This affordable and sustainable energy could power factories, data centers, and green technology experiments. Reports from Druk Holdings and Investments (DHI), the country’s sovereign wealth fund, suggest that these facilities could allow businesses to experiment with pump-storage systems or hydrogen production in real-world conditions. Successful pilot projects in Bhutan might then be expanded regionally.
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Expansion of Bitcoin Mining
As reported by Fortune, Bitcoin mining is one of Bhutan’s more unconventional ventures. The country began mining cryptocurrency in 2019 when Bitcoin valued just under $10,000. As of May 7, 2025, the price of each coin has surged to approximately $97,400. DHI states that the use of hydropower facilitates low-carbon mining, with profits enhancing the fund’s $3 billion portfolio. However, cryptocurrency prices can be volatile, with significant drops potentially erasing gains. Nevertheless, DHI refers to Bitcoin as “digital gold” and integrates it into a diversified strategy.
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Gelephu Mindfulness City
According to planning documents, Gelephu Mindfulness City will span around 2,500 square kilometers near the Indian border. This special economic zone is designed to connect Bhutan with South and Southeast Asia, providing space for health clinics, tech startups, and green-energy enterprises. It is positioned as a space where productivity meets wellness. Comprehensive infrastructure development, including roads and digital lines, is required, which will necessitate considerable investment and time before hotels and offices can be filled.
Bhutan’s GNH index improved from 0.743 in 2010 to 0.781 in 2022. Simultaneously, GDP per capita increased from $2,435 to $3,711, although it experienced a sharp decline in 2020 during the pandemic. The tourism sector is gradually recovering, with 145,000 visitors in the previous year, down from 315,599 in 2019, following a “high-value, low-impact” model that limits arrivals to safeguard mountain roads and forests.
DHI aspires to emulate Singapore’s Temasek in terms of governance. Temasek manages roughly $300 billion and holds interests in major companies like Singapore Airlines. In contrast, DHI owns shares in 24 Bhutanese firms, including Bhutan Telecom and the Bank of Bhutan. Executives emphasize that size isn’t as crucial as swift action, agility, and translating green energy into economic growth.
Bhutan’s approach is ambitious, merging traditional values with modern technology and finance opportunities. If young people find viable job prospects locally, some may choose to remain. Should pilot initiatives succeed, small endeavors could scale. Nonetheless, any missteps in hydropower, cryptocurrency, or urban development could strain Bhutan’s limited resources. For now, both investors and citizens are watching closely.
Featured image from Unsplash, chart from TradingView
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