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Bhutan Embraces Cryptocurrency with Innovative Payment System
Bhutan, the picturesque Himalayan nation renowned for prioritising happiness, has taken a pioneering step in the world of digital finance. Teaming up with Binance Pay and local bank DK Bank, the Bhutanese government has unveiled a state-of-the-art cryptocurrency payment system tailored specifically for travellers.
A First-of-Its-Kind System
Launched on May 7, this fully integrated payment system enables visitors to pay for various goods and services using one of over 100 different cryptocurrencies. Travellers can conveniently utilise the Binance app to scan vendor QR codes, streamlining their payment experience and circumventing the common issues associated with foreign exchange fees and inconsistent support in remote regions.
Over 100 local vendors, including airlines, hotels, government agencies, and tour operators, are onboard with this initiative, offering tourists a seamless transaction experience as long as they hold a Binance account.
Strengthening Tourism Post-Pandemic
Bhutan’s tourism sector has faced significant challenges, especially during the COVID-19 pandemic. In an effort to rejuvenate this vital industry, the government has adopted several measures, such as reducing the daily Sustainable Development Fee charged to visitors, engaging in influencer marketing, and establishing an official booking portal. A surge in tourist arrivals and revenue by 145% and 157%, respectively, was observed in late 2024, indicating a promising recovery trajectory.
Damcho Rinzin, Director of the Department of Tourism of Bhutan, emphasised the broader impact of the new payment system:
“This is more than a payment solution – it’s a commitment to innovation, inclusion, and convenience.”
According to Binance, the system not only simplifies travel logistics but also addresses common challenges faced by international tourists, such as substantial transaction fees and limited acceptance of foreign cards.
Bhutan’s Significant Crypto Holdings
Despite its small geographical size, Bhutan has established a formidable presence in the cryptocurrency arena. It ranks third globally among nations in terms of Bitcoin holdings, boasting approximately 12,061 BTC valued at over AU$1.87 billion. This robust reserve positions Bhutan behind only the United States and the United Kingdom, with its Bitcoin primarily acquired through a government-backed mining operation initiated in 2018.
Leveraging its abundant hydroelectric resources, Bhutan conducts Bitcoin mining using the powerful glacial meltwaters that flow during the summer months. Ujjwal Deep Dahal, CEO of Druk Holding and Investments, described this operation as a “financial battery,” allowing the government to store value that can support their financial needs during the winter months when energy becomes scarce.
Dahal asserts that this strategy not only enables Bitcoin generation during summer but also acts as a hedge against fluctuating energy resources, making it a foreign currency reserve for the nation.
Conclusion
Bhutan’s introduction of a cryptocurrency payment system represents an ambitious leap toward integrating digital currencies into everyday commerce, promoting financial inclusion, and enhancing the overall tourist experience. As the nation continues to explore the potential of cryptocurrencies, it is setting a remarkable precedent for other countries to follow.
