Bhutan recently made headlines by selling $100M worth of Bitcoin (BTC) in order to double the salaries of public workers and combat brain drain in the country. With their BTC holdings decreasing from 13K to 8K in the past year, Bhutan has found innovative ways to utilize this cryptocurrency to address their economic challenges.
According to a report by Al Jazeera, the use of Bitcoin in Bhutan has been instrumental in increasing civil servant salaries and preventing the mass exodus of skilled workers seeking better wages in other countries. In 2022, it was reported that 10% of Bhutan’s 800,000 population had left the island in search of better opportunities, a trend that continued into 2024. However, the implementation of BTC has helped to alleviate this crisis.
Bhutan’s Prime Minister, Tshering Tobgay, highlighted the various ways in which Bitcoin has been used in the country, including providing free healthcare and supporting environmental initiatives. However, the main focus has been on using BTC to finance public worker salaries. The sale of $100M worth of BTC in 2023 was aimed at increasing salaries, with Bhutan leveraging its excess hydroelectric power for BTC mining.
Currently, Bhutan holds 8.19K BTC, valued at around $700M based on current prices. While the island’s BTC holdings peaked at 13K in 2024, it has since decreased by 5K. Bhutan’s approach to utilizing BTC for economic growth is not unique, as other countries such as El Salvador have also entered the crypto space. El Salvador mines BTC using its geothermal power resources and has acquired a significant amount of BTC through market purchases.
The collective control of 529K BTC by countries like the U.S., El Salvador, and Bhutan, as reported by Bitcoin Treasury, indicates a growing trend of nation-state adoption of cryptocurrencies. This trend could potentially increase demand for BTC and contribute to its long-term value. As countries continue to explore the potential benefits of incorporating cryptocurrencies into their economic strategies, the impact on global financial markets remains to be seen.
