Cryptocurrency Gains Ground in the Kingdom of Bhutan In Bhutan’s misty Himalayas, cryptocurrency is infiltrating daily life in an unexpected manner. Amidst centuries-old monasteries in the background, digital money is being employed to buy meals, lodging, and even national fees. During a recent tour facilitated by Binance traveled to Thimphu and Paro to observe how deeply crypto has ingrained itself into the faraway kingdom. Binance and DK Bank Pioneer the Way Since May 7, Binance Pay and Bhutan’s DK Bank have enabled users to pay using Bitcoin (BTC), Binance Coin (BNB), Tether (USDT), and other cryptocurrencies. Approximately 1,000 local merchants take cryptocurrency. From eateries to street stalls, the ease and low cost of transactions have surprised locals and tourists in equal proportion. The project is a reflection of Bhutan’s new-thinking under King Jigme Khesar Namgyel Wangchuck, or the Dragon King. Local Understanding Still in Early Stages Despite the growing popularity of cryptocurrencies, much of Bhutan’s economy remains cash-based. Tour guide Kuenley Dorjee that while most of the country’s citizens are just beginning to hear about crypto, they are eager to learn more. “It’s simpler to use and the charges are better,” replied Dorjee, pointing to the country’s openness to innovation. State-Backed Crypto Projects and Mining During the reign of King Jigme, Bhutan has initiated ambitious crypto projects—like Bitcoin mining on hydroelectricity and constructing a strategic reserve to store cryptocurrencies. Bhutan began mining BTC as early as 2019 and now possesses over 12,000 BTC, as per reports. In 2023, a crypto reserve was planned for the Gelephu Mindfulness City (GMC), which was announced as a Special Administrative Region. Internet Connectivity Remains a Weak Link One of the biggest threats to seamless crypto adoption is internet access. Paro and Thimphu saw patchy slow speeds witnessed, which was also documented by residents on social media. Cryptocurrency transactions can be impacted by slow internet, making real-time payments difficult. However, Starlink’s arrival in Bhutan on February 17 offers hope. Starlink Brings Hope for Faster Adoption Starlink is providing speeds of 100–200 Mbps and can make the digital infrastructure a game-changer. DK Bank president Ugy Gelephuin called it a “blessing” for Bhutan’s crypto dreams. While infrastructure is not yet fully developed, there is growing optimism. Bhutan appears to be on an optimistic path towards greater crypto integration—fueled by innovation, an innovative monarchy, and digitally interested citizens.
