Bhutan Taps Hydropower for Green Crypto Mining to Achieve ESG Goals ⋅ Crypto World Echo
Bhutan is exploring the use of hydropower to mine greencryptocurrencies. The aim is to support the economy and reduce youth migration,according to the head of the country’s sovereign wealth fund.
Green cryptocurrencies are digital currencies mined usingrenewable energy, such as hydropower. Unlike fossil fuels, these energy sourceshave a lower environmental impact.
Bhutan is located between India and China. It has investedin popular cryptocurrencies in recent years. Two government officials inThimphu said profits from these investments helped pay public sector wages fortwo years.
Bhutan Leverages Hydropower for Green Crypto Mining
The sovereign wealth fund, which also oversees Bhutan’s solepower utility, began investing in cryptocurrencies in 2019. CEO Ujjwal DeepDahal, Druk Holding and Investments Ltd, CEO said the fund viewed these assetsas both a strategic investment and a potential turning point for the country.
Bhutan operates large computers using hydropower to minedigital coins. Officials are assessing whether international corporations wouldbe willing to buy these “green” coins to meet environmental, social,and governance (ESG) targets.
While Bhutan is scaling up green crypto mining throughhydropower, Russiahas imposed a six-year ban on crypto mining in 10 regions starting January2025. This move, aimed at reducing fossil fuel consumption, seeks to conserveenergy for essential sectors, especially during peak winter demand when powershortages are more likely.
Check out a story on ESG trends and their impact on the CFDindustry at FinanceMagnates.com: Profit and Planet: ForexBrokers Embrace Sustainability amid $50 Trillion ESG Surge.
Youth Exodus Impacts Bhutan’s Crypto Ambitions
“Bitcoin has not just given more value to hydropower energy,it has also increased access to liquidity in foreign currency,” said Dahal. Headded that training young people in blockchain and AI could create jobs.
The country, with a population of about 800,000, isexperiencing a youth exodus. Government data shows over 10% of young peopleleft the country between 2022 and 2023. Youth unemployment rose to 16.5% in2024.
Analysts say Bhutan’s plan to become a centre for greencryptocurrency mining will depend on expanding its hydropower. The countrycurrently has about 3.5 gigawatts in capacity, but it has the potential toreach 33 gigawatts.
This article was written by Tareq Sikder at www.financemagnates.com.
