For years the kingdom of Bhutan stood apart from global trends. Today the Himalayas hum not only with prayer wheels but also with mining farms. ForkLog looks at how a small mountain state is building a digital future—and what bitcoin has to do with it.
From centuries of isolation to mining
Until recently Bhutan pursued a policy of self-isolation and protection of national traditions: it was extremely difficult for foreigners to enter the kingdom, and television arrived only in 1999.
A turning point came with the enthronement of Jigme Singye Wangchuck. His son, the current king, Jigme Khesar Namgyel Wangchuck, has actively continued the modernisation drive begun by his father. The country is slowly but steadily opening its borders, developing tourism and building international ties.
A key initiative is the “Digital Bhutan” programme. Its goal is to transform the kingdom into a technologically advanced nation. The programme encompasses infrastructure, e-government, digital literacy and support for IT start-ups.
In 2023 it emerged that the kingdom had been secretly mining at the state level. Forbes, citing data leaks from bankrupt crypto lenders BlockFi and Celsius, reported that Bhutan’s sovereign investment fund, Druk Holding & Investments (DHI), had been a client, channelled millions of dollars into cryptocurrencies and launched large-scale mining operations.
DHI, which manages the kingdom’s state assets, confirmed it mines bitcoin. Bhutan’s chief advantage is an abundance of cheap hydroelectric power—an environmentally clean resource that the country exports to neighbouring India. Mining farms running on renewables fit with Bhutan’s aspiration to remain a carbon-neutral nation.
In 2023–2024 the state stepped up efforts in this field. News emerged of DHI partnering with major international mining companies to build new data centres powered exclusively by hydropower.
According to BitcoinTreasuries, Bhutan ranks fifth in the world by the size of its bitcoin reserves. The country holds 12,062 BTC.
Bhutan’s stance on cryptocurrencies can be described as cautiously optimistic. There is no outright ban on citizens using digital assets, but the Royal Monetary Authority (RMA) has warned of risks stemming from volatility and the absence of regulation.
At the same time Bhutan is actively exploring blockchain’s potential. In 2021 the RMA entered into a partnership with the American company Ripple to test a digital version of the national currency—the ngultrum—based on CBDC technology. The aim is to enhance financial inclusion and the efficiency of cross-border payments. As the RMA said, this would expand access to financial services for the 85% of the population with mobile phones.
Beyond CBDCs, Bhutan is studying blockchain applications in areas such as agricultural supply-chain tracking and land-cadastre management.
“High value, low impact”
The philosophy of “High value, low impact” has long shaped the country’s tourism policy, which seeks to minimise adverse effects on the environment and culture.
After the COVID-19 pandemic Bhutan took significant steps to relaunch tourism while overhauling its regulation. A cornerstone of the strategy has been the Sustainable Development Fee (SDF), whose proceeds fund infrastructure, healthcare, education and environmental conservation.
When borders reopened in September 2022 the SDF was raised from $65 to $200 per person per day. The decision aimed to reinforce the “high value” principle, attract more affluent visitors and offset higher costs.
To stimulate arrivals and adapt to the post-pandemic reality, in September 2023 the government cut the SDF to $100. The measure will remain in place until 31 August 2027.
Visa procedures were also simplified, and travellers can now book hotels and services directly, not only through accredited operators.
The country is actively developing ecotourism with an emphasis on immersion in local culture and opportunities to discover the concept of Gross National Happiness.
Cautious openness
The country’s foreign policy is traditionally marked by caution and a desire to preserve sovereignty and a unique cultural identity. India remains Bhutan’s key and historically principal partner.
Ties between the two countries span a wide range of areas, including economic co-operation. India also provides substantial financial assistance to Bhutan under its five-year development plans.
China is another important neighbour, where Bhutan has no official diplomatic representation. The main issue in relations with China is the ongoing negotiation of the common border. In recent years there has been an acceleration of demarcation talks.
In April 2025 Thailand’s king, Maha Vajiralongkorn, visited Bhutan. The visit included joint Buddhist ceremonies with Jigme Khesar Namgyel Wangchuck. Rituals involving 74 monks from each country underscored centuries-old religious ties.
The choice of Bhutan for the first overseas visit in decades (the Thai monarch last visited Laos in 1994) has been linked to international politics.
“Bhutan is a small stable country, not involved in the confrontation between the US and China. This sets the tone for Thailand’s neutrality,” explained an anonymous diplomat to Nikkei Asia.
In addition, Bhutan has been a member of the UN since 1971 and is active in various international organisations such as SAARC and the Non-Aligned Movement. The kingdom maintains diplomatic relations with more than 50 countries, including Bangladesh, Thailand, Japan, South Korea, Australia, Canada and several European states.
In its foreign policy Bhutan adheres to the principles of peaceful coexistence, mutual respect and the promotion of Gross National Happiness on the international stage, often advancing initiatives aimed at sustainable development and environmental protection.
Can Bhutan become a technology hub
Bhutan’s path to a technological future is not without challenges. These include limited human resources, the need to develop IT infrastructure in difficult mountainous terrain, potential brain drain and preserving cultural identity amid rapid technological change. Mining’s reliance on hydropower also carries risks related to seasonality and climate change.
Even so, Bhutan’s distinctive approach—pairing a hunger for innovation with the philosophy of Gross National Happiness—attracts global interest. State support for mining and crypto initiatives, a focus on environmental protection and a measured approach to regulation could make the kingdom an example of how a small country can use cutting-edge technology for sustainable development.
Having long lived in voluntary isolation, Bhutan now shows it is ready not merely to catch up but, in some respects, to get ahead of global technological trends. No longer a closed kingdom, it is a state seeking its own path in the digital world.