Bhutan Boosts Economy with Bitcoin-Funded Salaries
Key Takeaways
– Bhutan uses Bitcoin (BTC) to address economic challenges
– In 2023, BTC worth 100 million USD was sold
– Goal: Double public sector salaries and stop workforce emigration
– BTC mining powered by hydroelectric energy
– Bhutan’s current BTC holdings: approx. 8,190 BTC
– Similar approaches seen in El Salvador
Bhutan Turns to Bitcoin to Combat Skilled Labour Shortage
Bhutan has taken an unconventional approach to tackle its economic issues: the use of Bitcoin. By selling BTC worth 100 million USD, the country was able to double the salaries of public sector employees in 2023. The aim of this measure was to stop the emigration of skilled workers to other countries.
Background: Why Bitcoin?
Since 2022, around 10% of Bhutan’s population—approximately 80,000 people—have left the country in search of better wages in more economically developed nations. The public sector was particularly affected. In response, the government took a bold step: it financed salary increases through the sale of Bitcoin from its own reserves.
Prime Minister Tshering Tobgay stated that BTC is also used to fund environmental and healthcare projects, but the primary purpose is to finance public sector salaries.
Mining with Hydropower: Sustainable BTC Production
Bhutan has substantial hydroelectric resources. A portion of the surplus electricity is used for Bitcoin mining. Mining involves solving complex computational problems to generate new BTC. This requires high-performance computers operating continuously and consuming large amounts of energy.
By utilizing renewable energy sources like hydropower, Bhutan can produce BTC efficiently and in a relatively environmentally friendly way. Surplus energy is also exported to India.
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Current Status of BTC Reserves
According to data from blockchain analytics firm Arkham, Bhutan held around 13,000 BTC at the beginning of 2024. That figure has since decreased to approximately 8,190 BTC. The current market value of these reserves is about 700 million USD. The decline indicates that Bhutan is actively selling BTC to fund government expenditures.
International Comparisons: Is El Salvador a Role Model?
Bhutan is not the only country investing in Bitcoin. El Salvador is pursuing a similar strategy. There, BTC is mined using geothermal energy from volcanoes. Unlike Bhutan, however, El Salvador purchases most of its BTC directly from the market.
According to data from BitcoinTreasuries, countries like Bhutan, El Salvador, and the United States collectively hold around 529,000 BTC. This growing government involvement could increase long-term demand for Bitcoin.
Our Assessment
Bhutan’s strategy demonstrates how cryptocurrencies can be used to address specific economic challenges. The combination of domestic BTC production through mining and strategic sales to fund public services is noteworthy. Whether this model is sustainable in the long term depends heavily on the future performance of BTC prices.
For crypto enthusiasts, Bhutan presents an intriguing example of state-level use of cryptocurrencies—not as speculative assets, but as practical economic tools.
Sources
– Al Jazeera
– Arkham
– BitcoinTreasuries
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $93,739.00 |
| 24h % | 1.42 % |
| 7d % | 10.87 % |
| 30d % | 6.62 % |
| 60d % | -2.16 % |
| 1y % | 46.74 % |
| Market Cap | $1,861,523,611,840.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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