High in the Himalayas, the tiny kingdom of Bhutan, long known for its pursuit of “gross national happiness”, has now set its sights on a new measure of contentment: cryptocurrency.
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In a move that has startled some of its neighbours and inspired global fintech champions, the “Land of the Thunder Dragon”, home to around 800,000 people, is using state-mined bitcoin to fund public salaries and lure a new wave of tourists.
Bhutan became, in May, the world’s first nation to unveil a countrywide, government-backed system enabling visitors to pay for virtually every aspect of their stay using digital currencies – from visa fees and flights to hotel rooms and entry to ancient dzongs.
The initiative, supported by Binance Pay and the nation’s own fully digital DK Bank, has caught on quickly, with more than 1,000 vendors now taking part – up from just 100 some two months ago.
The technology is “seamless” for vendors and tourists alike, according to Binance CEO Richard Teng. While customers pay with cryptocurrency via Binance Pay, merchants receive immediate settlements in the local currency, ngultrum, shielded from the volatility that typically characterises crypto markets.
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