Bhutan’s Innovative Approach to Boosting the Economy Through Hydropower
Reports indicate that Bhutan is exploring innovative uses for its abundant hydropower resources to invigorate its economy. The country plans to harness this clean energy to support cryptocurrency mining, aiming to generate employment opportunities and retain skilled professionals within its borders. This initiative is not Bhutan’s first foray into the crypto sector, as the nation has already profited significantly from its previous investments in digital currencies.
Sustainable Energy for Cryptocurrency Mining
“We are a nation that operates entirely on hydropower,” stated Ujjwal Deep Dahal, CEO of Druk Holding and Investments Ltd., according to reports. “Every digital coin mined in Bhutan using our hydropower effectively counterbalances those mined using fossil fuels.” Despite its impressive Gross National Happiness index, Bhutan, with a population of 800,000, faces a significant outflow of young, educated individuals. This challenge has motivated the country to pursue a leadership role in green digital currency.
Future Growth in Hydropower Capacity
However, Bhutan has a considerable journey ahead, as its existing hydropower capacity stands at 3.5 gigawatts. Dahal revealed plans to elevate this capacity to 15 gigawatts over the next 15 years, which would bring it closer to the levels some experts suggest are necessary to achieve the country’s objectives.
Environmental Concerns of Cryptocurrency Mining
Utilizing hydropower is one strategy to mitigate the environmental impact associated with cryptocurrency mining, which is often linked to fossil fuel consumption. Nevertheless, stakeholders acknowledge that further solutions are needed to address the ecological challenges posed by digital currencies. The energy-intensive nature of crypto assets is widely recognized — for instance, a single bitcoin transaction consumes as much electricity as an average person in countries like Ghana or Pakistan would use in three years, as reported by the International Monetary Fund.
Energy Strain and Risks of Power Outages
The substantial energy requirements of digital currencies can put significant pressure on local power grids, regardless of their energy sources, heightening the risk of outages. This issue becomes even more critical during extreme weather events, such as heatwaves, which can pose serious dangers, especially as these occurrences grow more intense and frequent due to climate change driven by pollution from non-renewable energy sources.
Bitcoin’s Environmental Footprint
According to United Nations University, the carbon emissions from global bitcoin mining are equivalent to the pollution produced by burning 84 billion pounds of coal, which would necessitate planting 3.9 billion trees to offset. Additionally, the industry consumes a staggering amount of water, enough to fill over 660,000 Olympic-sized swimming pools. While promoting renewable energy usage could help some miners curb their environmental impact, implementing stricter tax regulations might also encourage further pollution reduction efforts.
Global Trends in Green Cryptocurrency Initiatives
Countries like Bhutan are not alone in their pursuit of environmentally friendly cryptocurrency practices. The GRASS coin, which stands for Green Asset Solutions and Sustainability, provides funding for eco-conscious projects. Moreover, there are crypto cards designed to consume significantly less energy than traditional payment options.
