How One Small Country Became a Global Crypto Powerhouse

In the far-off Himalayan regions, where prayer flags fly against the high mountain skies, there has been an unexpected change in the economy. This shift is far more than just terraced slopes and monastery chanting. Bhutan is most known for utilizing Gross National Happiness as a policy indicator, but it has also become a major player in the world of cryptocurrencies. Instead of excitement, its approach is built on calm, meticulous engineering and long-term planning.

Bhutan’s rise is mostly because it has a lot of clean, renewable hydropower. This was the basis for a secret mining project during the COVID-19 pandemic. When the economy stalled, the government saw an opportunity: they could use the extra electricity that would have gone unused to power devices that verify Bitcoin transactions in a way that doesn’t harm the environment, instead of using dirty fossil fuels.

Bhutan’s Crypto Emergence — Key Facts

It wasn’t a quick transformation; it was a careful use of current benefits to create a new type of economic output. The country’s sovereign wealth fund, Druk Holdings & Investments (DHI), carried out the strategy strategically under the guidance of CEO Ujjwal Deep Dahal. Over time, the little country’s mining rigs began to collect digital assets in ways that caught the eye of both investors and regulators. They worked with experienced organizations like Bitdeer Technologies Group to build partnerships and continuously improve their capacity.

The way Bhutan’s mining and hydropower infrastructure started to work is like a swarm of bees carefully spreading out over a field of wildflowers. Each bee made a big difference to the bigger harvest, and they all worked together perfectly to create consistent, cumulative value. By the end of 2025, this plan had brought in almost $1.3 billion in Bitcoin reserves, which was almost 40% of Bhutan’s GDP. This is a figure that few larger economies could match.

The setting makes the stockpile’s size much more impressive than its magnitude alone. Bhutan got its Bitcoin by mining it with hydroelectric power through a government-approved business, not by buying large amounts on free markets or accepting stolen property. Bhutan’s plan was based on sustainable self-generation, which would have sounded less poetic if it had been employed before, unlike other states that are using blockchain technology or digital currency.

This plan has had effects on the economy that are felt every day. The government has been able to raise civil servant pay by up to 65% since bitcoin mining profits have made it possible for public sector salary to go up a lot. The ability to pay people well locally has been especially useful in keeping skilled workers and improving public service in a culture where brain drain—skilled people departing for higher income overseas—has long been a worry.

The country’s poverty rate, which was about 28% in 2017, had already dropped a lot by 2022. This was mostly because of big development projects. But the government’s ability to pay for social programs and infrastructure projects without relying solely on imports or foreign help has grown a lot because of the money that Bitcoin mining has brought in. This has made the economy stronger and more diverse.

This change happened in a way that is almost like poetry: a country famed for its beautiful mountains and peaceful monasteries is getting stronger online from currents that have flowed down the same slopes for a long time. In a lot of ways, this feels more like a natural change than a trend from another country.

Bhutan has also accepted cryptocurrency, in addition to mining it. In May 2025, the government started a national payment system that lets tourists use more than 100 different cryptocurrencies to buy things. This was a real-world, productive use of digital assets, and the kingdom was one of the first to include bitcoin payments to its tourism infrastructure. Travelers can pay for everything from hotel stays to souvenirs in ways that are in line with how people around the world use technology. This is a subtle technique to make Bhutan seem more tech-friendly without losing its cultural uniqueness.

The government is even more interested in blockchain now. The goal was to give people control over their own digital identities by creating a decentralized identification system based on blockchain technology. This self-sovereign identity architecture is meant to show how far and deep the country’s digital goals are, with uses ranging from secure authentication to voting platforms.

Plans for Gelephu Mindfulness City, a digitally connected, wellness-focused city of the future, give us an even broader picture. The goal of using cryptocurrencies and blockchain apps in everyday services and business is to show that digital and physical life will one day be combined in a way that is efficient and conscious, rather than chaotic and conflictual.

Some people might worry if it’s a good idea to put so much money into a hazardous asset like Bitcoin in a small economy. But the leaders of Bhutan made it clear from the start that this was a planned investment in assets that were anticipated to hold and grow in value over long periods of time, not a risky bet. The state said it would rather keep its holdings for a long time than sell them right away. This fits with Bhutan’s overall focus on long-term, sustainable growth rather than short-term profits.

This systematic point of view should be taken into account by bigger economies. The demands of quarterly reporting cycles or rapid measures have too much of an effect on financial policy. Bhutan’s strategy, on the other hand, focuses on the possible benefits of thinking in terms of years or decades. It connects technical innovation to existing comparative advantages instead of forcing a fit where one doesn’t naturally exist.

Bhutan is currently in an interesting position compared to other countries who are trying out cryptocurrency. For example, El Salvador became famous for turning Bitcoin into legal cash. While Bhutan has focused on using sustainable energy to make and store digital assets and then carefully and successfully integrating those assets into bigger economic systems, El Salvador’s project aimed to get more people to utilize Bitcoin in everyday transactions.

When you walk around Thimphu’s outdoor markets, you notice something small yet important: the mix of traditional living with modern amenities. Young businesses and store owners in the country see the mining and cryptocurrency projects as real parts of a changing economy, not just ideals. There is a measured sense of hope based on progress, not blind trust or cynical doubt.

Observers say that size is a problem when trying to compete with bigger jurisdictions that have greater resources. But Bhutan’s experience indicates that size may be an advantage when it is combined with accuracy, focus, and an understanding of each person’s strengths. This country has leveraged its natural resources and political structures to create very effective economic diversification that builds on rather than throws away tradition. This is possible since the country has a tiny population and large areas of land.