For more than two decades, my investments have been primarily focused on startups, allowing me to establish a profound admiration for entrepreneurs attempting to establish a business. It’s undoubtedly a challenging endeavor, and it often does not yield the desired outcome. Constructing an entire nation, however, presents an even greater challenge. It’s disheartening to see how many leaders in developing countries do not take up this challenge, choosing instead to use their brief tenure for personal gain. However, there are a handful of leaders who strive to make a difference. One such leader is Nayib Bukele, who in September 2021, legalized Bitcoin in El Salvador. This move led to a significant transformation in the country on several fronts.
For some time, there have been whispers about Bhutan’s engagement with Bitcoin. Recently, we learned about mining operations in Bhutan, which has resulted in an impressive Bitcoin stack of approximately 13,000. To put it into perspective, this amount is equivalent to about 30% of the country’s GDP. This means that each citizen of Bhutan indirectly possesses nearly 0.02 Bitcoin, which, at present rates, is eight times the average monthly income. Moreover, all Bitcoin mining in Bhutan is powered by 100% clean and renewable energy—hydro power. As the only country with a negative carbon footprint, Bhutan also boasts the largest Bitcoin stack relative to its size— a fact that has attracted global attention.
During a six-day tour of this picturesque country, I had the opportunity to attend the Bhutan Innovation Forum. Here, I met numerous exceptional individuals, including Their Majesties, from whom I learned a great deal about Bhutan, mindfulness, their developmental strategy, and the role that Bitcoin plays. During my travels, I also witnessed two substantial Bitcoin mining sites.
Upon congratulating Her Majesty, Queen Ashi Tshering Yangdon, on their Bitcoin strategy, she introduced me to His Majesty, Jigme Khesar Namgyel Wangchuck, the Fifth King. In our brief conversation, he repeated the phrase, “Hodl, hodl, hodl”. He explained his discovery of Bitcoin back in 2011 and how Bhutan started mining Bitcoin in 2019. Since his ascension to the throne in 2008, the then-28-year-old King has repeatedly declared his commitment to the welfare of his people and his country, and he has devoted the last sixteen years to fulfilling this pledge.
However, this is far from an easy task. Bhutan’s economy is currently running a deficit, and the country is highly reliant on India. Despite the challenges, India has been supportive, aiding in infrastructure development and meeting most of Bhutan’s import needs. The majority of Bhutan’s economy is agriculture-based, leading to high living costs and limited income opportunities, which has resulted in a significant emigration trend among the youth. Despite these challenges, the country is making strides with the help of Bitcoin and other innovative initiatives.
The introduction of Bitcoin in Bhutan is part of a broader plan for innovation and modernization. His Majesty’s primary initiative is the creation of the “Gelephu Mindfulness City”, a multi-billion dollar project aimed at fostering entrepreneurship, technology, and mindfulness in Southern Bhutan. This project, along with their Bitcoin initiatives, is expected to attract significant foreign investments and talent. By leveraging Bhutan’s unique assets, including affordable environmentally friendly hydro power and strong English skills, His Majesty aims to improve the happiness and standard of living of his people. Bitcoin, undoubtedly, plays a key role in Bhutan’s future.
When discussing Bitcoin with government officials in Bhutan, I noticed a certain level of apprehension, likely due to a desire to maintain a low profile. However, it is clear that Bitcoin is creating significant benefits for the Bhutanese, beyond just value creation.
At the age of 44, and after 16 years in power, His Majesty has shown a long-term vision for the development of this beautiful country nestled in the Himalayan mountains. As demonstrated by countries worldwide, it’s a colossal task, but the introduction of Bitcoin is significantly improving Bhutan’s odds.
This article was contributed by Alex v. Frankenberg. The views and opinions expressed in this article are those of the author and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
