Bhutan is launching a unique economic revival plan by tapping into its abundant hydropower for crypto mining. The strategy blends sustainability with innovation, aiming to generate jobs, retain citizens, and attract those who left the country. While the approach could boost growth, Bhutan must carefully balance mining’s energy demands with its deep-rooted environmental values.
A Nation at a Crossroads.
Bhutan is losing a lot of people to overseas jobs, and it wants to develop other industries, as tourism is not sufficient for its economy. In the past ten years, many Bhutanese professionals (engineers, IT experts, and entrepreneurs) moved to countries such as Australia, Canada, and the US. This trend has resulted in a shrinking labor force and increased skill gaps.
To tackle the issue of brain drain, Bhutan has unveiled a plan to mine cryptocurrency using its vast hydropower plants, which provide nearly all the power of Bhutan. Bhutan aims to create jobs for its people by setting up data centers powered entirely by renewable energy and to position itself as a global center for green blockchain.
Mining of Bitcoin, Ethereum, etc., will not get us success—Dr. Tashi Dorji. “It’s about providing a future for our youth that does not force them to leave their country to find a job.”
Why Hydropower Makes Sense.
Bhutan is making a shift to crypto mining thanks to one of its outstanding assets—energy. Bhutan generates over 2,000 MW, mainly from hydropower plants in the country’s hilly areas, every year. By not doing anything more than increasing the grid charge, Bhutan can now monetize any unused energy that it generates.
Bhutan plans to earn a lot of money by charging a fee on the transactions and the currencies that they mine. Officials believe that even small-scale mining could generate millions in the national budget for schools, hospitals, and roads.
Karma Wangchuk, who heads Bhutan’s Ministry of Economic Affairs, said hydropower gives us a competitive edge. We can offer miners some of the lowest electricity rates in the world while staying true to our commitment to environmental sustainability.
Addressing Workforce Challenges.
Another goal of the initiative is to address Bhutan’s longstanding labor shortages. Mining for cryptocurrencies requires technical know-how in IT maintenance, cybersecurity, data analysis, etc. Many young Bhutanese have such talents but lack opportunities to apply them. To equip citizens for these jobs, the government is partnering with universities or vocational schools to establish training programs that focus on blockchain technology and digital skills.
The officials also hope that good jobs from the mining sector will motivate expatriates to come back. “If we can guarantee stable incomes and career growth within Bhutan, people will not feel the need to leave,” said Sonam Lhamo, director of Bhutan’s Youth Employment Agency.
But critics say mining will not stem the flow of people leaving to work abroad. Many Bhutanese migrants cite social mobility, access to further education, and other factors besides economics as their reasons for leaving. Unless they are addressed, skeptics contend, will the workforce retention impact of crypto mining match expectations?
Environmental and Ethical Concerns.
Bhutan’s reputation as a carbon-negative country, achieved through the utilization of hydropower, aligns well with the project but has raised concerns. Experts believe energy utilization for mining could have adverse effects, such as diverting investment away from the health and education sectors. Others question the environmental impact of large-scale mining activities. These involve excessive water usage and e-waste.
Many people are worried that if the country chooses cryptocurrency, it would make the country go against happiness and prefer the volatile and demanding riches of cryptocurrency. Pema Tshering, a cultural historian, remarked, “This seems to take us away from what we know.” Are we trading our values for quick money?”
Supporters say Bhutan’s method is in line with its values. While most crypto hubs are dependent on fossil fuels, Bhutan’s model is sustainable and community-centric. Bhutan will use the money from mining to fund public services and contribute to the country’s environmental transformation.
I have learned lessons from elsewhere.
Bhutan may not be the first country to look at green crypto mining, but its difference is the almost total reliance on renewables and workforce development. Norway and Iceland are already doing sustainable mining. They show that going green does not mean losing money. But they, too, have obstacles like costly operations and bigger player challenges.
To achieve a low-carbon future, Bhutan has to learn from these two examples. To illustrate, partnerships with global tech firms can help bridge the gap in expertise and infrastructure. To ensure that mining helps people at the local level, small-scale community mining should be encouraged.
A Gamble Worth Taking?
Bhutan is embarking on an ambitious project with significant stakes and rewards. If Bhutan is successful with its bid, the kingdom could become the leader in green tech within the region, revitalize its economy, and encourage other countries to adopt sustainable blockchain. If Bhutan fails at implementing blockchain, it may hamper the current economy and acceptance of any new innovation.
For now, policymakers and citizens are optimistic. Dr. Dorji stated that this is our chance to show that we can make progress by following culture and tradition. “If we do it right, Bhutan won’t just survive; it will thrive.”
It is unclear whether Bhutan’s investment in crypto will pay off. It’s clear that this nation’s experience offers lessons in the delicate art of negotiating technology with culture to offset the negative impacts.
