Bhutan Bets On Green Crypto To Power Economy And Retain Talent

The Kingdom of Bhutan is harnessing its abundant hydropower resources to mine green cryptocurrencies in a bid to invigorate its economy, generate employment, and curb the exodus of young talent, according to the head of the country’s sovereign wealth fund.

Ujjwal Deep Dahal, CEO of Druk Holding and Investments Ltd. (DHI), said the fund began investing in digital assets in 2019, identifying cryptocurrencies as both a strategic financial opportunity and a transformative force for Bhutan’s development.

“We are a nation that runs 100% on hydropower, and every digital coin we mine in Bhutan using hydropower offsets that coin which gets mined using fossil fuels,” Dahal told on Tuesday. “So a coin mined in Bhutan will contribute to the green economy.”

Green cryptocurrencies refer to digital coins mined using renewable energy sources such as hydro, solar, or wind, instead of fossil fuels.

Tucked between the economic heavyweights of India and China, Bhutan has quietly earned millions from its crypto investments, two senior officials in Thimphu confirmed. Some of the profits were reportedly used to pay government salaries for two years—underscoring crypto’s emerging role in the nation’s finances.

At the heart of Bhutan’s push is its commitment to sustainability, exemplified by its unique Gross National Happiness (GNH) index—a holistic approach to measuring development that goes beyond GDP to include environmental preservation, mental well-being, and cultural resilience.

To mine cryptocurrencies, Bhutan uses hydropower to run energy-intensive supercomputers that validate transactions and generate digital assets on blockchain networks. Officials are now examining how these “green” coins could be marketed to global corporations aiming to meet environmental, social, and governance (ESG) targets.

“Bitcoin has not just given more value to hydropower energy, it has also increased access to liquidity in foreign currency,” Dahal said, adding that the country plans to upskill its youth in blockchain and artificial intelligence technologies to create future job opportunities.

Bhutan, a country of roughly 800,000 people, is facing a worrying trend of youth emigration. Government figures show over 10% of its young population left the country between 2022 and 2023, contributing to a youth unemployment rate of 16.5% in 2024.

Realizing its ambition to become a global hub for green digital currencies hinges on a major expansion of its energy infrastructure. Bhutan currently has an installed hydropower capacity of about 3.5 gigawatts, but plans are underway to increase that to 15 gigawatts over the next 10 to 15 years—with a long-term potential of up to 33 gigawatts.

“Our vision is clear,” said Dahal. “We’re not just exporting clean energy—we’re building a digital future powered by it.”