Bhutan Relies on Green Energy to Drive an Environmentally Friendly Digital Economy

On April 17, 2025, Reuters reported that Bhutan is harnessing its 100% hydropower potential to mine environmentally friendly cryptocurrency. This initiative is part of a national strategy to strengthen the economy and reduce youth unemployment. Druk Holding and Investments Ltd. (DHI), the country’s state-owned investment arm, views digital asset mining as a long-term and sustainable investment. Since its launch in 2019, profits from the crypto sector have been used to fund government employee salaries.

Unlike traditional crypto mining, which relies heavily on fossil fuels, Bhutan's cryptocurrency is mined using clean energy, making it environmentally friendly and aligned with the country’s sustainability values. This approach also reflects Bhutan’s unique philosophy of Gross National Happiness (GNH), which emphasizes the well-being of its citizens over mere GDP-based economic growth.

As part of this effort, the Bhutanese government is also providing training in blockchain technology and artificial intelligence to young people, aiming to create new job opportunities and address youth unemployment, which stands at 16.5% due to rising emigration. Bhutan is targeting an expansion of its hydropower capacity from 3.5 gigawatts to 15 gigawatts within the next 10 to 15 years, with a long-term ambition of reaching 33 gigawatts to support its position as a global green crypto hub. The government is also exploring partnerships with multinational companies interested in eco-friendly cryptocurrency as part of meeting Environmental, Social, and Governance (ESG) standards, while also strengthening Bhutan’s foreign exchange reserves.

A Financial Times report in March 2025 noted that Bhutan currently ranks fifth in national Bitcoin holdings, with an estimated 12,206 BTC—valued at over US$1 billion. These Bitcoins were obtained through domestically sourced hydro-powered mining, not through asset seizures as seen in some other countries. Although the value of these reserves remains relatively small compared to Bhutan’s overall economy, they represent an important source of revenue for a country with limited wealth-generation options. Amid rising global interest in Bitcoin as a hedge against inflation, price volatility remains a persistent challenge.

As part of its broader sustainable development strategy, Bhutan has also introduced the ambitious Gelephu Mindfulness City (GMC) project—an eco-friendly city designed to attract foreign investors and create jobs. The project involves the development of renewable energy-based infrastructure and the integration of blockchain technology into the financial and digital services systems. Gelephu GMC is expected to become a hub for innovation and sustainability, embodying the principles of GNH in a tangible form.

Bhutan’s move to leverage green crypto as an economic tool demonstrates an innovative approach to addressing social and economic challenges. By capitalizing on its abundant renewable energy resources, the Himalayan kingdom is reducing its dependence on fossil fuels while paving the way toward a technology-based digital economy. Nevertheless, the volatility of crypto assets remains a risk that must be managed through strict regulation and oversight to prevent systemic threats to national economic stability.

Bhutan shows that even a resource-limited nation can build a sustainable economic model by utilizing green energy and advanced technology. Through its integration of eco-friendly crypto innovation and transformative projects like Gelephu GMC, Bhutan is striving to create a digital ecosystem aligned with sustainability and social welfare. If successful, Bhutan’s model could serve as an inspiring reference for other countries seeking to develop economies grounded in sustainable development principles.