Bhutan is embracing cryptocurrency as part of its national strategy to modernise its tourism infrastructure and attract a new wave of tech-savvy visitors. By integrating crypto payments into everyday transactions for tourists, the Himalayan kingdom hopes to overcome long-standing challenges in its payment systems and boost economic growth.

A Digital Leap Forward for Tourism

During a recent panel at Binance’s Crypto-Powered Tour in Bhutan, Damcho Rinzin, director of Bhutan’s Department of Tourism, acknowledged the tourism sector’s long struggle with outdated banking infrastructure. He noted that international travellers often found traditional wire transfers cumbersome, describing them as “a thing of the past.”

In response, Bhutan is now moving towards digital payments through a partnership between Binance Pay and local financial institution DK Bank, announced on May 7. The collaboration allows tourists to pay for services and experiences using cryptocurrency. According to DK Bank president Ugyen Tenzin, nearly 1,000 merchants across the country have already been onboarded to accept crypto payments.

Welcoming the Modern Traveller

For Rinzin, crypto adoption isn’t just a technological upgrade; it’s a strategic branding move. “This sends a very strong message that Bhutan is very welcoming,” he said, adding that the initiative is targeted at a younger, forward-looking demographic that values flexibility, convenience and innovation.

He said the move aligns with Bhutan’s broader tourism vision, which promotes sustainability and mindfulness. The goal is to attract 300,000 crypto-using travellers annually, even a fraction of Binance’s vast user base could make a significant economic impact.

Cheaper, Faster and More Efficient Payments

Rinzin emphasised the advantages of using cryptocurrency over traditional banking methods, pointing to faster transaction speeds and lower fees. He believes these benefits will not only improve the visitor experience but also support Bhutanese businesses.

“Digital inclusion is going to do wonders for people not only in the tourism industry in Bhutan,” Rinzin said. “It would also help people in other industries,” suggesting a spillover effect that could modernise Bhutan’s broader economy.

A New Identity for a Traditional Kingdom

Carissa Nimah, chief marketing officer of Bhutan’s Department of Tourism, echoed these sentiments during a media roundtable. She described Bhutan as “traditional and authentic,” yet increasingly “focused and visionary.”

Nimah said the embrace of cryptocurrency represents a natural evolution in Bhutan’s identity. “This partnership opens up Bhutan to a new category of traveller, people who want to explore the world using crypto payments,” she said.

She also connected the crypto initiative to Bhutan’s larger development projects, particularly the Gelephu Mindfulness City, a proposed smart city that will integrate wellness, innovation, and sustainability. Nimah believes crypto payments will play a key role in facilitating commerce within such projects.

Adoption Still in Early Stages

Despite the enthusiasm from officials, on-the-ground adoption of crypto remains limited. Some local merchants participating in the programme said they had yet to serve a customer using digital currency.

A local tour guide also expressed scepticism about relying solely on crypto while travelling in Bhutan. He advised visitors to use a mix of payment methods, crypto, cash and credit cards, to ensure smooth experiences.

While challenges remain, the government sees crypto as a long-term investment in Bhutan’s future. By stepping into the world of digital finance, Bhutan is signalling its willingness to innovate while preserving its core cultural values.