Bhutan is contemplating the use of its hydropower resources for Bitcoin (CRYPTO: BTC) mining to stimulate its economy without compromising its environmental goals.
What Happened: In an interview with Reuters on Tuesday, Ujjwal Deep Dahal, CEO of Bhutan’s sovereign wealth fund, Druk Holding and Investments Ltd., revealed the Himalayan nation’s intentions for green cryptocurrency mining, referring to coins produced using clean and renewable energy sources.
Dahal said that each digital coin mined in Bhutan using hydropower effectively “offsets” a coin mined using fossil fuels.
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Since 2019, the sovereign wealth fund, which controls Bhutan’s only power generation utility, has been incorporating cryptocurrencies into its portfolio, Dahal added. As of this writing, it owns a Bitcoin stash worth over $646, according to blockchain analytics platform Arkham, making it a bigger holder than El Salvador.
Bhutanese officials were also considering the possibility of large conglomerates purchasing Bhutan’s “green” coins to fulfill their environmental, social, and governance norms, the report noted.
Apart from cryptocurrency mining, Dahal emphasized that training Bhutan’s youth in blockchain and artificial intelligence technology could fuel job growth in the country.
Notably, Bhutan recorded a youth unemployment rate of 19% in 2024, up from 15.9% in 2023, according to government statistics.
Why It Matters: Leading officials in the Bhutan government have been actively endorsing hydro-powered Bitcoin mining as a viable and eco-friendly venture.
Bhutan’s Prime Minister Tshering Tobgay deemed it a “simple, strategic choice,” capable of delivering billion-dollar returns.
Earlier in January, a special administrative region in the country announced that it would hold a multi-cryptocurrency strategic reserve, consisting of Bitcoin, Ethereum (CRYPTO: ETH), and Solana (CRYPTO: SOL), to boost its economic resilience.
Price Action: At the time of writing, Bitcoin was exchanging hands at $84,390.03, up 1.16% in the last 24 hours, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
