The Prime Minister of Bhutan calls Bitcoin mining a “simple strategic choice” for governments.
Prime Minister Tshering Tobgay recently stated that Bitcoin mining represents a “simple strategic choice” that could generate billions of dollars in profit for governments that choose to invest in the sector.
In an interview with Al Jazeera, Tobgay explained that using excess hydroelectric power during the summer months for mining “makes perfect sense” from an economic perspective. “It’s simply a strategic choice that many people have made, earning billions of dollars, and I believe governments should do the same,” said the Prime Minister.
The report highlights how mining is one of the few industries that allows Bhutan to grow its economy while remaining true to its environmental values. The country has a strong commitment to protecting natural resources, with a constitution that mandates at least 60% of its total land area be maintained as forest.
“We have been very careful about foreign direct investment. We have ruled out companies that harm the environment, contaminate the air, or threaten our culture,” Tobgay declared.
A key aspect of Bhutan’s approach is its use of Bitcoin to counter brain drain from the public sector. According to reports, the government sold $100 million worth of bitcoin in 2023, which allowed it to double public sector salaries and reduce resignations in the following year.
Bhutan is among the world’s largest sovereign holders of bitcoin, with reserves valued at over $656 million (7,697 BTC) managed by the state-owned investment firm Druk Holdings, according to blockchain analytics platform Arkham.
