Up until recently, El Salvador was the only nation whose government was engaged in the activity of cryptocurrency mining. However, as per Forbes’ recent findings, Bhutan, the mountainous and land-locked nation in the Indian sub-continent has also been extensively carrying out similar digital-currency mining.
Unlike its Latin American counterpart though, the crypto-mining operations occurring in Bhutan are being carried out on the down low. Forbes’ report, too, is based on satellite inputs from three specific sources: Google Earth, Planet Labs and Satellite Vu. According to the report Forbes put together based on these details it received, Bhutan’s said to have begin its preparations to start its crypto-mining operations in 2020 with the operations eventually beginning in 2023.
The Dagana region in the southern part of the country, Trongsa a region that lies in the central part of the country, and a religiously-relevant place called Dochula Pass are said to be the places where these mines are stored and carry out their processes. In addition, a region that was to be developed as “Education City” back at the turn of the first decade of 2000s also sees crypto-mining operations, these days.
In fact, of the four locales, the Dochula Pass area’s where the heftiest chunk of digital-currency mining operations take place.
These mines are said to require immensely heavy supply of electricity, to the tune of 91 terawatts per year and in 2023, Bhutan’s said to have imported electricity costing around $21 million. Bhutan’s requirement for electricity corresponds to this activity of its given that the nation usually exports its surplus electricity – in the form of hydropower – to its neighbour, India.
Why are Bhutan’s sights set towards digital currency?
The emergence of this report at this juncture might seem as a surprise but Bhutan’s affinity towards cryptocurrency and other forms of digital currency isn’t new-found.
The country’s leader, its monarch Jigme Khesar Namgyel Wangchuck is said to be a huge backer for digital currency towards revolutionising and ensuring his kingdom’s financial woes were kept at bay, especially in the post-pandemic scenario.
A tourist economy, Bhutan did get crippled because of the Covid pandemic and has only slowly started to emerge from the pandemic-imposed fugue state to its tourism sector. In the meanwhile, as it does so, employing digital-currency mining operations is also being seen as a viable transition for it to attain and ensure a continued economic prosperity.
However, Bhutan and its emperor Wangchuck’s continued attention towards crypto hasn’t come without problems. Last year, in 2022, while two digital-currency lending organisations, Celsius and BlockFi had gone bankrupt, it came to light that Bhutan had lost significantly, too, as it had invested in both of them.
What’s next for Bhutan’s aspirations?
Despite the setbacks it’s had, Bhutan’s perseverance towards enhancing its presence in the world of cryptocurrency is notable. Nonetheless, the onus continues to remain with its decision-makers to put checks in place to ascertain there’s no potential threat of data leak, or worse, loss of valuable crypto that would not only affect them but also the end-users.
