Ambitious Growth Strategy Through Energy and Digital Assets
Bhutan is pursuing an unusually bold development strategy that blends hydropower expansions, high-value tourism, and cryptocurrency innovation for faster growth and new jobs. Bhutan’s rugged terrain and small population limit traditional economic expansions, so policymakers are exploring riskier, innovative options to lift incomes and employment.
Consequently, expanding hydropower capacity, which contributes significantly to exports and GDP, remains a core pillar of this strategy. At the same time, the mining and strategic holding of cryptocurrencies like Bitcoin and Ether aim to turn clean energy into valuable digital reserves.
By redirecting surplus renewable electricity to digital asset production, Bhutan hopes to generate revenue it can deploy for public spending and diversification. Additionally, a special economic zone on the Indian border seeks to attract tourists, investors, and tech first while facilitating digital transactions.
However, this approach hinges on several untested assumptions about crypto prices, energy flows, and long-term investor appeal. Therefore, the risks are high, yet successful execution could signal a powerful model for other small, developing economies.
Gelephu Mindfulness City and Governance Challenges
To further diversify growth, plans for Gelephu Mindfulness City combine wellness tourism with blockchain infrastructure and digital finance. This urban special administrative region is designed to host businesses, residents, and international visitors under innovative regulatory frameworks.
In this zone, digital reserves and clean energy assets may support a new economic ecosystem built around sustainability and tech. Government revenues already benefit from crypto holds, helping boost civil servant wages and reduce youth migration abroad. Yet reliance on volatile digital asset values and weather-dependent hydro output poses fiscal and operational challenges.
Moreover, attracting substantial investment and managing infrastructure development require careful policy design and external financing. Even so, blending traditional energy strength with cutting-edge digital finance could reshape Bhutan’s economic trajectory.
Source:
Yusuf, S. (2026, February 5). Gambling to develop: A small, landlocked economy takes the plunge. Brookings Institution. https://www.brookings.edu/articles/bhutan-bold-growth-strategy-hydropower-crypto-gelephu/