Bhutan has allocated 9% of its GDP to Bitcoin mining, leveraging its abundant hydropower resources to generate revenue and diversify its foreign exchange reserves. The country, which once held up to 13,000 bitcoins, has reduced its holdings to 4,000 bitcoins through continuous selling. This strategic move is part of Bhutan's effort to break free from economic dependence on India and address its current account deficit, which peaked at 34.3% of GDP in the 2022/23 fiscal year. The initiative, led by Druk Holding and Investments (DHI), aims to utilize surplus electricity during Bhutan's wet season for Bitcoin mining. This approach aligns with Bhutan's environmental values, as it emits no greenhouse gases. Despite the economic benefits, Bhutan faces challenges such as high youth unemployment and a significant diaspora seeking opportunities abroad. The country's bold investment in Bitcoin mining has improved its fiscal position, but the broader impact on Bhutanese society remains complex.
Bhutan Allocates 9% of GDP to Bitcoin Mining Amid Economic Risks
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