Bhutan Prepares To Open Bitcoin Mining To Boost Domestic Economic Growth

Bhutan plans to open a Bitcoin mining facility. (Photo; Doc. Little Bhutan)

JAKARTA - Bhutan, a royal country in South Asia has taken a major step by starting a Bitcoin mining plan. This is intended to boost the country's economic growth.

Bhutan collaborated with Bitdeer Technologies Group in building a Bitcoin mining center with a capacity of 600 megawatts.

According to a Nikkei Asia report, Bitdeer Technologies Group is tasked with raising $500 million (Rp7.6 trillion) from global investors to support the project, and they have confirmed the start of the capital collection effort.

Ujjwal Deep Dahal, CEO of Druk Holding and Investments, explained why Bhutan is considered suitable for Bitcoin mining. He mentioned that although Bhutan has geographical constraints and connectivity constraints due to being confined to land and mountains, the country has an environmentally friendly and relatively cheap supply of electricity.

This allows Bhutan to participate in digital asset mining which is expected to build a sustainable economy. The CEO also sees crypto mining as a way to deepen local population knowledge and engagement. This will allow Bhutan residents to participate in the modern global economy without having to leave their country.

In addition, the Nikkei Asia report also states that Bhutan's economy, which is still affected by the impact of Covid-19 and foreign exchange issues, has the potential to benefit significantly from crypto mining.

The plan is for a crypto mining operation with a capacity of the first 100 megawatts to begin in September. However, Bhutan officials also stated that they plan to increase capacity to reach 600 megawatts in the next three years.

It should be noted that in an agreement between Bitdeer and DHI Bhutan, the first priority will be given to domestic electricity needs. However, in winter as electricity supply decreases, mining operations are likely to be closed to maintain electricity supplies for domestic needs.