As Bhutan grapples with youth migration and economic instability, the country's prime minister says Bitcoin mining is opening up new horizons and should be followed by other countries.

As a Buddhist kingdom on the eastern side of the Himalayas known for its monasteries, Bhutan appears to be focusing on Bitcoin (BTC) as a potential solution to its economic woes, despite the known risks associated with the cryptocurrency's price fluctuations.

In an interview with Al Jazeera, Bhutanese Prime Minister Tshering Tobgay described state-run bitcoin mining as “a smart strategic choice that many have made and made billions of dollars,” adding that “nations should get involved [in cryptocurrency mining].”

Bhutan faces many economic challenges, including high youth unemployment and an increasing number of skilled workers leaving the country. According to a report, more than 10% of the educated population emigrated in 2022. Some experts believe that Bitcoin could help reverse this trend, as the government has reportedly sold $100 million worth of the cryptocurrency to boost civil servant salaries in 2024.

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The exact amount of Bhutan's BTC holdings remains unclear, although data from various blockchain analytics firms suggests they could be worth more than $600 million, or about 30% of the country's GDP.

Bitcoin mining requires significant energy resources, but Bhutan may be an exception due to its abundant hydroelectric power and cool climate. Ujjwal Deep Dahal, CEO of Bhutan’s sovereign holding company Druk Holdings, noted that “it is important for Bhutan to take advantage of the green energy that we have in terms of Bitcoin mining as part of our investment portfolio.”

Additional information: Bhutan's Bitcoin assets exceed $1 billion.

Source: cryptonews.net