Bhutan Adopts Crypto Payments Amid Limited Connectivity

Nestled in the Himalayas, Bhutan is taking a bold step into the future of finance by embracing cryptocurrency payments, even as much of its population faces limited internet access.

Overview

The Kingdom, long known for its cautious and measured approach to development, is now seeking to position itself as a digital innovator. Recent efforts include support for crypto mining and blockchain integration, with the royal government exploring partnerships to facilitate digital asset adoption across sectors like tourism, remittances, and cross-border trade. On May 7 2025, Bhutan launched tourism crypto patents with Binance Pay and DK Bank.

The move aligns with Bhutan’s broader strategy to diversify its economy, reduce dependence on hydropower exports, and tap into emerging technologies to boost innovation. Despite the country’s mountainous terrain and dispersed rural population, Bhutan is betting that the long-term benefits of crypto and blockchain can outweigh its connectivity limitations. A government-backed pilot is already underway to test crypto payment solutions in Thimphu and Paro, targeting local merchants and service providers catering to tourists.

Overcoming Infrastructure Barriers

While Bhutan’s ambitions are clear, the reality on the ground presents several hurdles. Internet penetration, though improving, remains uneven—particularly in remote districts where network outages and speed fluctuations are common. According to the Bhutan InfoComm and Media Authority (BICMA), just over 75% of the population had internet access as of 2024. Many regions still rely on basic mobile connectivity, which poses a challenge for real-time digital transactions, let alone crypto-based payments that require internet or blockchain nodes.

To bridge the gap, the Bhutanese government is working with global fintech firms to develop offline-capable crypto wallets and point-of-sale systems. These tools allow transactions to be signed and validated once users regain connectivity. Furthermore, the state-owned Druk Holding and Investments (DHI), which has partnered with firms like Bitdeer for Bitcoin mining operations, is exploring blockchain-based identity systems and lightweight payment protocols that work in low-bandwidth settings.

Bhutan’s focus on crypto adoption is not isolated—it is part of a broader digital modernisation plan. The country launched the Bhutan National Digital Identity (NDI) project last year, and its integration with blockchain infrastructure could create a reliable foundation for secure, inclusive financial services.

Crypto as a Tool for Economic Inclusion

Adopting crypto in Bhutan could transform financial inclusion, especially in rural areas with limited or absent traditional banking services. By enabling peer-to-peer payments through mobile-based wallets, crypto could empower local entrepreneurs, artisans, and farmers to access broader markets without intermediaries. Additionally, Bhutanese citizens working abroad may find it easier and cheaper to send money home using crypto remittance services than traditional banks or money transfer operators.

Tourism, a vital contributor to Bhutan’s GDP, also stands to benefit. With the government’s new Sustainable Development Fee (SDF) and visa policies aimed at high-value, low-volume tourism, enabling crypto payments for hotels, tours, and entry fees could enhance convenience for digital-savvy travellers. Bhutan hopes this will attract a new demographic of eco-conscious, tech-oriented visitors who are comfortable transacting in crypto.

Still, officials caution that crypto adoption must be gradual and regulated. The Royal Monetary Authority (RMA) is drafting digital asset usage guidelines to ensure consumer protection, AML compliance, and price stability. The central bank has not issued a blanket endorsement of cryptocurrencies like Bitcoin (BTC)  or Ethereum (ETH), but it is actively studying their utility under a sandbox framework.

Bhutan’s decision to embrace crypto payments marks a significant shift in its development trajectory, blending ancient traditions with cutting-edge technology. Though connectivity challenges persist, the government’s willingness to experiment with blockchain and crypto tools underscores its vision of a digital-first, inclusive economy. If victorious, Bhutan could emerge as a model for how small nations with limited infrastructure can still harness the power of digital finance to foster resilience, innovation, and growth.