I am a big fan of entrepreneurs who are trying to start a business. The process is extremely difficult. Most of the time, this doesn’t happen. It is, however, much harder to develop an entire country. Most leaders of developing nations don’t try. Many leaders in developing countries don’t even try. Some leaders try their best. Nayib Bukele made Bitcoin legal tender in El Salvador in September 2021. The country has made remarkable progress on many fronts since then.
Bitcoin’s involvement in Bhutan was rumored for quite some time. Few weeks ago we heard about the mining operation in Bhutan that led to an impressive Bitcoin stack. It’s a large amount. Bhutan leads the world in Bitcoin holdings, which are worth about 30% of GDP. At current prices, each Bhutanese holds around 0.02 bitcoins per capita. This is eight times their average monthly income. The hydroelectric power used for all Bitcoin mining is 100% renewable and clean. Bhutan is one of the few countries in the world that emits no CO2. It also has the highest Bitcoin stock in proportion to its size. Bhutan is getting worldwide attention.
After spending six days in this beautiful country and attending the Bhutan Innovation Forum, I met so many wonderful people. His Majesty and her Majesty were among them. Bhutan, the importance of mindfulness in their strategy for development, and Bitcoin’s role. When I was traveling, I saw two Bitcoin mines that were quite large.
After congratulating Her Majesty Queen Ashi Tshering Yangdon on the Bitcoin strategy, she offered to introduce me His Majesty Jigme Khésar Namgyel, Fifth King. During a fifteen minute conversation with him he quickly stated „Hodl, hodl, hodl”. He discovered Bitcoin around 2011. Since 2019 Bhutan is mining Bitcoin. In 2008, when His Majesty became the leader of Bhutan at the age of 28, and several times after, he clearly stated his mission: “As King I pledge my life to the welfare of our nation and its people.” His Majesty has been working hard for sixteen years to honestly do that.
And it’s quite a challenge. The economy is running a deficit, dollars are scarce, Bhutan is highly dependent on India, a neighbor, who in 1975 made Sikkim, a neighboring Kingdom, the 16th Indian state. But India is also helping: Building roads, hydro power plants and delivering almost all the Bhutanese imports. The Indian Rupee and the Bhutanese Ngultrum are linked to each other. 70% of the Bhutan economy is based on agriculture, cost of living compared to average income is high, many young people are emigrating to Australia or Canada for better income opportunities. We have heard about domestic violence and alcohol issues, contradicting the notion of the Bhutanese being the happiest people in the world.
Like in El Salvador, Bitcoin is not the silver bullet, it is part of a bigger plan of innovation and modernization. His Majesty’s biggest initiative is building a new center for entrepreneurs, technology, and mindfulness called the „Gelephu Mindfulness City”A multi-billion dollar development project is underway in Southern Bhutan. The project involves recruiting a great deal of foreign talent and investments. Bitcoin is the other major initiative. Bhutan is a country that has the ability to produce cheap hydro power and export it to India. The Kingdom, therefore, aims at accumulating as many bitcoins as possible. Most hodlers are expecting a substantial value increase. Just a small portion is being sold. Bitcoin is all about wealth creation. Bhutan’s Bitcoin stash could surpass its GDP in this cycle, and even exceed foreign debt. Bitcoin is more than just a value generator: It’s called the energy-battery. Bhutan could use Bitcoin in winter, when India consumes less electricity and there’s less rain. Bitcoin provides Bhutan with hard currencies such as the US Dollar or Euro. Bhutan’s currency shortage is a well-known problem.
Bitcoin mining is a great way to develop technical skills. Bhutanese have the ability to run and maintain their mining machines. Bhutan can easily become a global competence center for Bitcoin mining. Skills acquired in one area can easily be transferred to another. Bhutan has implemented, on the Polygon chain, a digital national identification card. Bhutanese can access many services from the government using a wallet. Around 20 percent of Bhutanese are registered. The IT and Bitcoin know-how can attract foreign investors and start-ups. Bitcoin can be used to gain some strategic independence from India’s strong, but still friendly neighbor. Bhutan has no major concerns with China.
His Majesty bases the Bitcoin strategy off of the unique assets Bhutan has to offer, such as its cheap energy and English proficiency, its world-leading image for mindfulness and harmony in nature, and the ability of the country to not just preserve and protect the rich culture and history. His goal is to increase the standard of living and happiness of all his people, not just those who are poor. Bitcoin is clearly the driving force and key to Bhutan’s success.
We noticed a certain shyness when we discussed Bitcoin with government officials in Bhutan. This makes sense. Bitcoiners don’t brag about it. Bhutan needs help from the developed world and international organisations. I overheard a sentence at the conference “I tried to get him to sell, but he refused.” “Hodl, hodl, hodl”This is what I was told by His Majesty. Bitcoin has a significant impact on Bhutanese society, and not just in terms of creating value.
His Majesty, at age 44 and after spending 16 years as ruler, seems to have a vision for the future of this country, located in the Himalayan Mountains, with plenty of time in which to put it into practice. We can all see that it’s a tough job. Bitcoin is clearly improving Bhutan’s odds.
Guest post written by Alex v. Frankenberg. The opinions expressed by the authors are theirs alone and not those of BTC Inc. or Bitcoin Magazine.
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Source: bitcoinmagazine.com
