The Kingdom of Bhutan has long remained aloof from global trends. But today, the Himalayas are buzzing not only with prayer drums but also with mining farms.
Coinpaper explored how this small mountainous state is building a digital future—and what bitcoin has to do with it.
From Centuries of Isolation to Mining
Until recently, Bhutan pursued a policy of self-isolation and protection of national traditions. It was extremely difficult for foreigners to enter the kingdom, and even television did not appear in the country until 1999.
A turning point came with the enthronement of Jigme Singye Wangchuk. His son, the current King Jigme Khesar Namgyal Wangchuck, is actively continuing the modernization started by his father. The country is slowly but surely opening its borders, developing tourism, and building international ties.
A key initiative in this direction is the Digital Bhutan program, which aims to transform the kingdom into a technologically advanced country. The program includes infrastructure development, e-government, promotion of digital literacy, and support for IT startups.
In 2023, it was revealed that the kingdom was secretly mining cryptocurrencies at the state level. As Forbes reported, citing leaks from bankrupt cryptocurrency lenders BlockFi and Celsius, Bhutan's sovereign wealth fund, Druk Holding & Investments (DHI), was their client and funneled millions of dollars into cryptocurrencies while deploying large-scale mining operations.
DHI, the kingdom's state-owned asset manager, confirmed the bitcoin mining activities. Bhutan's main advantage is a surplus of cheap hydroelectricity—a clean resource that the country exports to neighboring India. Renewable energy mining farms fit perfectly into Bhutan's ambition to remain a carbon-neutral country.
The state intensified its efforts in this area between 2023 and 2024. DHI partnered with major international mining companies to create new data centers powered solely by hydropower.
According to BitcoinTreasuries, Bhutan ranks fifth in the world in terms of bitcoin reserves, holding 12,062 BTC.
Bhutan's attitude towards cryptocurrencies can be described as cautiously optimistic. There is no outright ban on the use of digital assets for citizens, but the Royal Monetary Authority (RMA) has warned about the risks associated with volatility and lack of regulation.
That said, Bhutan is actively exploring the potential of blockchain. In 2021, the RMA partnered with US-based Ripple to test a digital version of the national currency, the ngultrum, based on CBDC technology. The project aims to improve financial accessibility and the efficiency of cross-border payments. According to the RMA, it will increase access to financial services for the 85% of the population with cell phones.
In addition to CBDC, Bhutan is exploring the application of blockchain in areas such as agricultural supply chain tracking and land registry management.
"High Value, Low Impact"
The philosophy of "High Value, Low Impact" has long guided the country's tourism policy, seeking to minimize negative environmental and cultural impacts.
Following the COVID-19 pandemic, Bhutan has taken major steps to restart the tourism sector while introducing substantial regulatory changes. A key element of this strategy has always been the Sustainable Development Fee (SDF), with funds used for infrastructure development, health, education, and environmental conservation.
After the opening of the borders in September 2022, the SDF was raised from $65 to $200 per person per day. This decision aimed to reinforce the "high value" principle, attract more affluent tourists, and offset increased costs.
However, to stimulate tourist flow and adapt to post-pandemic realities, in September 2023, the Bhutanese government announced a reduction in the SDF to $100. This measure will remain in effect until August 31, 2027.
Alongside this, visa procedures have been simplified, and travelers can now book hotels and services directly, rather than only through accredited operators.
The country is also actively working to develop ecotourism, with a focus on immersion in local culture and opportunities to experience the concept of Gross National Happiness.
Cautious Openness
The country's foreign policy has traditionally been characterized by caution and a desire to preserve its sovereignty and unique cultural identity. India remains Bhutan's key and historically major partner.
Relations between the two countries cover a wide range of areas, including economic cooperation. India also provides substantial financial assistance to Bhutan as part of its five-year development plans.
The People's Republic of China is another important neighbor, although Bhutan has no official diplomatic representation there. The main issue in relations with China is the ongoing negotiations over the common border. In recent years, there has been an intensification of dialogue on demarcation.
In April 2025, King Maha Vajiralongkorn of Thailand visited Bhutan. The visit included joint Buddhist ceremonies with Jigme Khesar Namgyal Wangchuck. Rituals involving 74 monks from each country emphasized centuries-old religious ties.
The choice of Bhutan for the first foreign visit in decades (the last time a Thai monarch visited Laos was in 1994) has been attributed to international politics.
"Bhutan is a small, stable country not involved in the US-China confrontation. This sets the tone for Thailand's neutrality," an anonymous diplomat explained to Nikkei Asia.
Bhutan has also been a member of the United Nations since 1971 and actively participates in various international organizations such as SAARC and the Non-Aligned Movement. The kingdom maintains diplomatic relations with more than 50 countries, including Bangladesh, Thailand, Japan, South Korea, Australia, Canada, and several European nations.
Bhutan's foreign policy is guided by the principles of peaceful coexistence, mutual respect, and promoting the concept of Gross National Happiness in the international arena, with frequent initiatives aimed at sustainable development and environmental conservation.
Can Bhutan Become a Technological Hub?
Bhutan's journey towards a technological future is not without challenges. Limited human resources, the need to develop IT infrastructure in difficult mountainous conditions, potential brain drain, and the challenge of preserving cultural identity in the face of rapid technological change are just a few. The dependence of mining on hydropower also carries risks related to seasonality and climate change.
Nevertheless, Bhutan's unique approach—combining a commitment to innovation with the philosophy of Gross National Happiness—is generating interest around the world. Government support for mining and cryptocurrency initiatives, a focus on environmental protection, and a measured approach to regulation can make the kingdom an example of how a small country can utilize advanced technology for sustainable development.
Bhutan, long in voluntary isolation, is now demonstrating that it is ready not just to catch up with, but in some respects to stay ahead of, global technology trends. It is no longer a closed kingdom, but a nation searching for its place in the digital world.
