In the scenic Himalayan kingdom of Bhutan, where peaceful monasteries and misty mountains set the backdrop, a quiet digital revolution is underway. Once known primarily for its commitment to Gross National Happiness, Bhutan is now embracing cryptocurrencies as part of its vision for modernisation, thanks in large part to the leadership of King Jigme Khesar Namgyel Wangchuck.

Under the monarch’s progressive guidance, Bhutan has taken several bold steps in the crypto space. These include launching state-backed hydro-powered Bitcoin mining operations as early as 2019 and amassing over 12,000 BTC. In January 2024, the government also announced plans for a strategic crypto reserve in the Gelephu Special Administrative Region, also called Gelephu Mindfulness City (GMC).

This proactive approach is helping position Bhutan as one of the few countries in Asia to blend traditional culture with cutting-edge technology.

Crypto Payments in Daily Life

Bhutan’s journey with cryptocurrency adoption took a significant leap in May 2024 when Binance Pay partnered with DK Bank, a local financial institution. This collaboration allowed both tourists and locals to use cryptocurrencies like Bitcoin (BTC), BNB, and Tether (USDT) for a variety of services including:

• Flights and hotel bookings
• Visa applications
• Sustainable Development Fees
• Everyday items like snacks and street food

During a recent Binance Crypto-Powered Tour, Cointelegraph journalists witnessed locals in Thimphu and Paro using crypto to make payments at parks, hotels, and small businesses. DK Bank President Ugyen Gelchen shared that almost 1,000 merchants have already signed up to accept crypto payments through the program.

Local tour guide Kuenley Dorjee noted that while many Bhutanese are still learning the basics of crypto, the interest is growing quickly. “It’s a lot easier to use and the fees are better,” he remarked, highlighting the convenience of digital transactions.

The Connectivity Challenge

Despite the excitement around crypto, Bhutan still faces a significant hurdle: internet instability. Reliable connectivity is essential for crypto payments to work smoothly, yet many areas in Thimphu and Paro experience slow or inconsistent WiFi. Visitors on the crypto tour also reported frequent disruptions, which made real-time transactions difficult.

Locals on Reddit have also complained, calling the internet “horrendously slow” and “tedious,” reflecting a broader digital infrastructure issue in the country. These challenges raise valid concerns, especially when it comes to using digital wallets and real-time blockchain confirmations.

Starlink Brings New Hope

There is, however, light at the end of the tunnel. On February 17, 2025, satellite internet provider Starlink officially launched in Bhutan, potentially solving the connectivity crisis. With expected speeds between 100–200 Mbps, Starlink could ensure smooth crypto transactions even in remote regions.

DK Bank’s Gelchen described Starlink’s arrival as a “blessing”, especially for the crypto ecosystem. “Speed is very important when it comes to crypto payments,” he said. While Bhutan is not fully equipped yet, Gelchen expressed confidence that the country is “on the right track” toward building the necessary infrastructure.

A Future Fueled by Digital Currency

Bhutan’s embrace of cryptocurrency is not just a trend, it’s a strategic move aligned with the country’s broader development goals. From setting up national crypto reserves to making street-side snack payments possible through Binance Pay, the kingdom is taking serious steps toward becoming a crypto-friendly nation.

However, challenges remain. Internet reliability is still patchy, and much of the local population is just beginning to understand how digital currencies work. Education and infrastructure development will be key to achieving widespread adoption.

Still, with visionary leadership, strong partnerships, and new technology like Starlink entering the scene, Bhutan seems well-positioned to bridge the gap between tradition and modernity. The Dragon Kingdom’s crypto journey is just beginning, and the world is watching.