Bhutan’s sovereign wealth fund is mining environmentally-friendly green cryptocurrency’s using 100% hydropower to create jobs and boost foreign currency liquidity.

Bhutan’s sovereign wealth fund is diving headfirst into “green” cryptocurrencies, using the nation’s abundant hydropower resources to fuel a bold economic strategy.

The Himalayan kingdom, famous for prioritizing Gross National Happiness over GDP, has quietly been building a crypto portfolio since 2019 that’s already proven lucrative enough to fund government salaries for two years, according to officials in Thimphu.

“We are a nation that runs 100% on hydropower, and every digital coin we mine in Bhutan using hydropower offsets that coin which gets mined using fossil fuels,” said Ujjwal Deep Dahal, CEO of Druk Holding and Investments Ltd, the country’s sovereign wealth fund.

“So a coin mined in Bhutan will contribute to the green economy,” he added.

Bhutan’s strategy stands in sharp contrast to the energy-intensive crypto mining operations elsewhere that have drawn criticism for massive carbon footprints. The country is using its clean energy advantage to operate power-hungry supercomputers that create digital assets for blockchain networks.

Officials are exploring partnerships with major corporations seeking to meet ESG (environmental, social, and governance) targets by purchasing Bhutan’s eco-friendly coins.

The initiative serves dual purposes for the nation of 800,000 people. Beyond creating a new revenue stream, it’s also aimed at stemming the exodus of educated young Bhutanese, with government estimates showing more than 10% of youth left the country between 2022 and 2023, pushing youth unemployment to 16.5% in 2024.

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“Bitcoin has not just given more value to hydropower energy, it has also increased access to liquidity in foreign currency,” explained Dahal, emphasizing that training young people in blockchain and AI techniques will create much-needed jobs.

Analysts note that realizing Bhutan’s ambition to become a green digital currency hub depends on expanding hydropower capacity nearly tenfold – from current levels of about 3.5 gigawatts to a potential 33 gigawatts.

The innovative approach comes as cryptocurrencies face increased scrutiny worldwide for their environmental impact, with Bhutan positioning itself as a pioneering solution to combine digital asset growth with sustainable practices.