Imagine a small, mountainous kingdom leveraging cutting-edge crypto mining to boost its economy—Bhutan is doing just that.
In the latest crypto news, Bhutan, nestled in the East Himalayas, is showing how developing nations can tap into Bitcoin mining to drive economic growth.
On Sept. 16, Arkham Intelligence revealed Bhutan’s investment arm, Druk Holding and Investments (DHI), holds a whopping 13,029 Bitcoin (BTC), 656 Ether (ETH), and smaller holdings in BNB and Polygon. Altogether, their crypto stash is valued at around $780 million—an impressive 26.9% of Bhutan’s $2.9 billion GDP for 2023.
As global debt spirals and economic challenges mount, countries are seeking alternatives. Nations with towering debts are feeling the strain of rising borrowing costs and the questionable sustainability of current economic models. Could Bitcoin be a way out?
During the Bitcoin 2024 conference, MicroStrategy’s Michael Saylor proposed a bold idea: debt-ridden countries could reallocate their reserves from assets like gold to Bitcoin. The potential for Bitcoin’s long-term growth, he argued, could help these nations pay off their debts and boost economic prosperity.
Related: Bhutan’s Bitcoin Boom: $780 Million Stash
Bhutan, a developing country with limited income capacity (its GNI per capita is below $14,005), could serve as a beacon for other nations. Countries like Paraguay, Venezuela, El Salvador, and Argentina, facing similar financial issues, might follow in Bhutan’s footsteps.
Paraguay, in particular, boasts abundant hydroelectric energy, exporting much of its surplus to Argentina and Brazil.
If Paraguay redirected its excess power toward Bitcoin mining, as some experts suggest, it could unlock enormous economic potential—just like Bhutan. However, political red tape and regulatory hurdles continue to hold Paraguay back.
Bhutan’s forward-thinking strategy shows how Bitcoin can offer developing nations a lifeline to economic revitalization, possibly signaling a new frontier in global finance.
