Bhutan is exploring the use of hydropower to mine green
cryptocurrencies. The aim is to support the economy and reduce youth migration,
according to the head of the country’s sovereign wealth fund.
Green cryptocurrencies are digital currencies mined using
renewable energy, such as hydropower. Unlike fossil fuels, these energy sources
have a lower environmental impact.
Bhutan is located between India and China. It has invested
in popular cryptocurrencies in recent years. Two government officials in
Thimphu said profits from these investments helped pay public sector wages for
two years.
Bhutan Leverages Hydropower for Green Crypto Mining
The sovereign wealth fund, which also oversees Bhutan’s sole
power utility, began investing in cryptocurrencies in 2019. CEO Ujjwal Deep
Dahal, Druk Holding and Investments Ltd, CEO said the fund viewed these assets
as both a strategic investment and a potential turning point for the country.
Bhutan operates large computers using hydropower to mine
digital coins. Officials are assessing whether international corporations would
be willing to buy these “green” coins to meet environmental, social,
and governance (ESG) targets.
While Bhutan is scaling up green crypto mining through
hydropower, Russia
has imposed a six-year ban on crypto mining in 10 regions starting January
2025. This move, aimed at reducing fossil fuel consumption, seeks to conserve
energy for essential sectors, especially during peak winter demand when power
shortages are more likely.
Bhutan is a great example of how Bitcoin mining, sustainability and social benefits can go hand in hand. 🇧🇹The small landlocked country in the Himalayas has been mining Bitcoin with excess hydro power for quite some time now.Instead of exporting excess energy to India at… pic.twitter.com/SqIIW4eILS
— Dr. Jan Wüstenfeld (@JanWues) April 17, 2025
Check out a story on ESG trends and their impact on the CFD
industry at FinanceMagnates.com: Profit and Planet: Forex
Brokers Embrace Sustainability amid $50 Trillion ESG Surge.
Youth Exodus Impacts Bhutan’s Crypto Ambitions
“Bitcoin has not just given more value to hydropower energy,
it has also increased access to liquidity in foreign currency,” said Dahal. He
added that training young people in blockchain and AI could create jobs.
The country, with a population of about 800,000, is
experiencing a youth exodus. Government data shows over 10% of young people
left the country between 2022 and 2023. Youth unemployment rose to 16.5% in
2024.
Analysts say Bhutan’s plan to become a centre for green
cryptocurrency mining will depend on expanding its hydropower. The country
currently has about 3.5 gigawatts in capacity, but it has the potential to
reach 33 gigawatts.
This article was written by Tareq Sikder at www.financemagnates.com.
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