According to the head of its sovereign wealth fund, Bhutan, the Himalayan nation, is looking into mining and utilising green cryptocurrencies powered by hydropower to grow its economy, create jobs, and stem brain drain. These "green" cryptocurrencies are digital currencies that use clean energy like wind, hydro or solar power instead of fossil fuels. Located between India and China, Bhutan has earned millions by investing in some of the world’s leading cryptocurrencies in recent years. The government has used part of the profits to cover its salary payments for two years, as confirmed by two senior officials in the capital, Thimphu.

Ujjwal Deep Dahal, CEO of Druk Holding and Investments Ltd., stated, “We are a nation that runs 100% on hydropower, and every digital coin we mine in Bhutan using hydropower offsets that coin which gets mined using fossil fuels.” Speaking to Reuters on Tuesday, he added, “So a coin mined in Bhutan will contribute to the green economy.”

Dahal shared that the fund, which oversees Bhutan’s only power generation company, started investing in cryptocurrencies in 2019, viewing them as a smart strategy and a potential game-changer for the country’s economy. Bhutan is well-known for using its unique Gross National Happiness (GNH) index, which measures national progress by looking at things like well-being, leisure and sustainability, which typical GDP calculations don’t include. The country relies on hydropower to run powerful computers that generate digital currencies, which are then recorded on the blockchain. Officials are now considering whether major corporations could purchase these eco-friendly Bhutanese coins to help meet their environmental, social and governance (ESG) goals.

“Bitcoin has not just given more value to hydropower energy, it has also increased access to liquidity in foreign currency,” stated Dahal. He also mentioned that teaching Bhutan’s youth skills in blockchain and AI would help create employment opportunities.

Bhutan, a country with a population of around 800,000, is facing a wave of emigration among its young, educated citizens. The government reports that over 10% of its youth left the country between 2022 and 2023, pushing youth unemployment to 16.5% in 2024. Experts say Bhutan’s bold vision to become a hub for green digital currency hinges on significantly boosting its hydropower output, from the current 3.5 gigawatts to a possible 33 gigawatts.

“We have plans to generate 15 gigawatts in the next 10 to 15 years,” Dahal further said.