The Himalayan kingdom of Bhutan is turning to Bitcoin (BTC) to address its growing economic challenges. The government has begun using its Bitcoin reserves not just as a long-term investment, but as a lifeline to double the salaries of civil servants and curb the rising brain drain that has plagued the country in recent years.

Bhutan’s population, estimated at around 800,000, has been dealing with an alarming exodus of its skilled workers. By 2022, nearly 10% of Bhutanese citizens had left the country, mostly in search of better pay and job prospects abroad. This trend, if left unchecked, threatened to cripple the country’s public services and long-term development. In response, Bhutan took the unusual step of using cryptocurrency—specifically Bitcoin—as a direct tool for economic stabilization and workforce retention.

In a March 2025 interview, Prime Minister Tshering Tobgay confirmed that the government had sold $100 million worth of Bitcoin in 2023 to finance salary increases for public sector workers. He revealed that while BTC has supported environmental projects and free healthcare, its main use has been to strengthen the government workforce through salary enhancements. By significantly improving compensation for civil servants, Bhutan hopes to make remaining in the country a more viable and appealing choice for professionals.

One reason Bhutan is uniquely positioned to make this strategy work is its abundance of hydroelectric power. The country generates more electricity than it consumes, and much of this surplus is either sold to neighboring India or used to power high-performance computers for Bitcoin mining. Mining allows Bhutan to generate new BTC with relatively low overhead, giving the country access to a valuable digital asset that can be used as both a reserve and a funding mechanism.

Despite recent sell-offs, Bhutan still holds a sizable amount of Bitcoin. Data from blockchain intelligence firm Arkham shows the nation’s current holdings at approximately 8,190 BTC, worth around $700 million based on current market prices. That figure is down from a 2024 peak of 13,000 BTC, indicating that roughly 5,000 BTC have been sold to support government initiatives. Nonetheless, Bhutan remains among the most active national participants in the cryptocurrency space.

Bhutan is not alone in exploring the potential of Bitcoin as a national asset. El Salvador, for instance, made global headlines by adopting BTC as legal tender and has since used its volcanic geothermal power to mine Bitcoin. Though Bhutan and El Salvador employ different strategies, both are part of a growing trend where countries are looking to crypto for economic innovation. According to BitcoinTreasuries.net, over 529,000 BTC are currently held by national governments, highlighting the increasing interest in Bitcoin as a sovereign asset.

While Bhutan’s crypto-powered economic plan is attracting praise for its innovation, it also raises several risks. Bitcoin’s price is famously volatile, meaning that a sudden downturn could threaten Bhutan’s ability to fund future projects or salaries. Additionally, depending so heavily on a single digital asset exposes the country to economic shocks, regulatory challenges, and shifting global attitudes toward cryptocurrency.

Despite the risks, Bhutan’s approach could serve as a test case for how digital assets might be used in public finance. If successful, it could encourage other small nations with abundant renewable energy to adopt similar strategies. If not, it may serve as a cautionary tale about the perils of relying on unregulated and unpredictable financial tools.

In the end, Bhutan’s bet on Bitcoin is more than just an economic decision—it’s a bold statement about the future of finance. Whether this crypto-powered experiment leads to long-term stability or short-term relief, one thing is certain: the world is watching closely.