Bhutan Now Owns $1 Billion in Bitcoin; What About India?

[Xplorneet]

As Bhutan's Bitcoin holdings reach a staggering $1 billion, this small Himalayan kingdom is proving that even developing nations can leverage crypto for economic growth. Bhutan generates between 55 to 75 BTC weekly through mining operations powered by hydroelectric energy. In partnership with Bitdeer, Bhutan has raised $500 million for sustainable mining and now holds over 13,011 BTC, a reserve equivalent to almost 27% of its GDP.

Bhutan's Success in Crypto Mining and Eco-Friendly Approach​

Bhutan’s use of renewable energy for Bitcoin mining has paid off, setting a new standard in sustainable crypto mining. In September 2024, Arkham Intelligence reported that Bhutan’s crypto reserves have grown 177-fold since October 2022. The country's investment in green energy mining pools like AntPool, Braiins, and Foundry supports this eco-friendly approach, making it a model for sustainable crypto growth.

Global Shift: Other Developing Nations on the Crypto Front​

Other countries are following suit with eco-friendly mining efforts:

• El Salvador: The first nation to adopt Bitcoin as legal tender, El Salvador uses geothermal and solar energy to power its Bitcoin mining and has created “Bitcoin City.” Their 5,889 BTC holdings are valued at around $387 million.
• Kenya: Partnering with Marathon Digital, Kenya is emerging as Africa’s crypto leader, showcasing the continent’s potential in crypto mining.
• Paraguay: Leveraging abundant hydroelectric power, Paraguay is exploring regulations to facilitate Bitcoin mining. Over 90% of Paraguay’s energy comes from hydroelectric dams, positioning it as a potential crypto mining hub.

Challenges for Larger Nations like India​

Despite its potential, India’s approach to crypto remains conservative, oscillating between high taxes and regulatory uncertainty. While India ranks high in crypto adoption, regulatory issues have stalled innovation. For instance, bans and penalties on exchanges have created a challenging environment for crypto businesses, leaving the sector in a state of flux.

A Roadmap for India's Crypto Future​

India can learn from Bhutan and adopt a balanced regulatory approach. A phased framework, along with pilot programs and public-private partnerships, could allow India to benefit from the economic opportunities in crypto while maintaining financial stability. By promoting crypto literacy and fostering innovation, India could potentially lead in the global crypto space.

Final Thoughts​

Bhutan and other small nations highlight the economic potential of embracing crypto thoughtfully. If India can overcome regulatory hurdles, it could position itself as a global leader in digital finance. The time may be ripe for India to take bold steps in the world of cryptocurrency, leveraging its young, tech-savvy population to drive a new wave of financial innovation.