Bhutan's Prime Minister Backs Government Involvement in Bitcoin Mining, Citing Potential Billions in Returns

During an interview with Al Jazeera, Tshering Tobgay revealed that the utilization of the country's excess hydropower energy during the summer months for Bitcoin mining made “tremendous sense.”

Prime Minister Tshering Tobgay has backed the government’s involvement in Bitcoin mining, presenting it as a simple strategic decision with the potential for billion-dollar returns, according to a Monday report by Al Jazeera.

During an interview with the news outlet, Tobgay stated that the utilization of the country’s excess hydropower energy during the summer months for Bitcoin mining made “tremendous sense.”

“It's just a simple strategic choice that many people have made and earned billions of dollars, and I think governments should do it,” Tobgay remarked, highlighting the cryptocurrency's role as an economic resource.

Citing analysts, the report pointed out that Bitcoin mining was among the few industries that could enable Bhutan to expand its economy while remaining in harmony with its environmental values.

Bhutan is renowned for its commitment to preserving natural resources, with its constitution requiring a minimum of 60% of the total land area to be covered by forests.

The country's administration also employed Bitcoin mining to mitigate brain drain from its civil service. As per the report, the government sold $100 million worth of cryptocurrencies in 2023, leading to a doubling of civil servants' wages and a decrease in resignations the following year.

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The report further highlighted that while the U.S. Securities and Exchange Commission (SEC) is scrutinizing crypto firms, its regulations do not encompass Bitcoin mining, which falls under the purview of the Commodities Futures Trading Commission.

The SEC recently clarified that federal securities rules do not apply to activities like Bitcoin mining, potentially paving the way for the industry's rapid expansion in the U.S.

Bitcoin is currently trading at $85,593.98, showing an increase of 1.15% over the last 24 hours, according to Benzinga Pro.