Bhutan’s prime minister backed government involvement in Bitcoin (CRYPTO: BTC) mining, stating that it could be a strategic decision with potential billion-dollar returns, according to a media report on Monday.
What Happened: During an interview with Al Jazeera, Tshering Tobgay revealed that the utilization of the country’s excess hydropower energy during the summer months for Bitcoin mining made “tremendous sense.”
“It’s just a simple strategic choice that many people have made and earned billions of dollars, and I think governments should do it,” Tobgay added, emphasizing the potential of Bitcoin as an economic resource.
Citing analysts, the report noted that Bitcoin mining was one of the few industries that could allow Bhutan to grow its economy while aligning with its environmental values.
Bhutan has a strong commitment to protecting its natural resources, with its constitution mandating a minimum of 60% of its total land area be maintained under forest cover.
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Bhutan has also employed Bitcoin mining to reduce brain drain from the country’s civil service. According to the report, the government sold $100 million worth of cryptocurrencies in 2023, resulting in a doubling of civil servants’ wages and a decrease in their resignations the following year.
Why It Matters: Bhutan is one of the world’s biggest Bitcoin holders, with a stash worth more than $656 million held by its state-owned investment firm, Druk Holdings, according to blockchain analytics platform Arkham. This makes it a larger Bitcoin owner than El Salvador.
But it’s not just Bitcoin that the Asian country was betting on. Earlier in January, a special administrative region in the country announced that it would hold Bitcoin, Ethereum (CRYPTO: ETH), and BNB Coin (CRYPTO: BNB) as part of its strategic reserve to strengthen its economic resilience.
Notably, the SEC clarified last month that activities like Bitcoin mining were not subject to federal securities rules, possibly accelerating the industry’s expansion in the U.S. as well.
Price Action: At the time of writing, Bitcoin was exchanging hands at $85,593.98, up 1.15% in the last 24 hours, according to data from Benzinga Pro.
Photo Courtesy: Framalicious On Shutterstock.com
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