Mon Apr 14 04:16:22 UTC 2025: ## Bhutan Doubles Civil Servant Salaries with Bitcoin Mining Revenue

**THIMPHU, Bhutan** – Facing economic challenges including a brain drain and declining tourism, the Kingdom of Bhutan has embraced Bitcoin mining as a novel solution, leveraging its abundant hydropower to generate significant cryptocurrency revenue. This unexpected move has allowed the government to double the salaries of its civil servants, stemming a recent exodus of skilled workers.

Bhutan, known for prioritizing Gross National Happiness and environmental sustainability, has quietly amassed millions of dollars in Bitcoin over recent years. The country uses its surplus hydropower energy during peak seasons to power supercomputers that mine Bitcoin, a process that involves solving complex mathematical problems to add new coins to the blockchain.

Prime Minister Tshering Tobgay explained the strategy, stating that the surplus energy would otherwise be wasted. He emphasized that Bitcoin mining represents a strategic economic choice, particularly given the challenges posed by declining tourism revenue following the COVID-19 pandemic. Tourism, which contributes approximately 3.4% to Bhutan’s GDP, has struggled to recover to pre-pandemic levels.

The initiative has had a demonstrable impact. In 2023, the government sold $100 million worth of Bitcoin to double civil servant salaries, resulting in a significant decrease in resignations. While Bhutan hasn’t publicly disclosed its total Bitcoin holdings, Blockchain intelligence firm Arkham estimates the value to be over $600 million, representing about 30% of the country’s GDP.

The move is part of a broader strategy to combat a 19% youth unemployment rate and a significant brain drain, with over 10% of Bhutan’s skilled population leaving the country in 2022. The increased salaries aim to retain skilled workers and bolster the civil service.

Analysts note that Bitcoin mining aligns with Bhutan’s commitment to sustainability, as it utilizes excess renewable energy. The country’s cool climate also minimizes the need for energy-intensive cooling systems for the mining equipment.

While Bhutan’s approach is unique, it reflects a growing global interest in cryptocurrency among governments. Other nations, including El Salvador and the Central African Republic, have also embraced Bitcoin, highlighting a shift in perspective toward this digital asset. Bhutan’s success story may inspire other countries with abundant renewable energy to explore similar strategies for economic growth.

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