Nepal's new government should consider opening Bitcoin mining by following the successful model of its neighbor, Bhutan. Bhutan has quietly emerged as a major state-owned Bitcoin miner, now holding over 13,000 BTC, valued at approximately $1.3 to $1.4 billion. This impressive stockpile was not purchased with cash but mined using the country's abundant hydropower resources. Bhutan utilizes its massive, state-owned hydroelectric energy to mine Bitcoin directly, representing a significant, proactive, and "green" approach to national wealth creation. Remarkably, this Bitcoin reserve is now estimated to be worth roughly 40% of Bhutan's entire Gross Domestic Product (GDP).
Nepal shares a similar advantage: an abundance of hydroelectric power, especially during the monsoon season when thousands of megawatts of electricity go wasted. Reports indicate that nearly 1,400 megawatts of hydropower are spilled annually without utilization. Instead of letting this clean energy go to waste, Nepal could follow Bhutan's example by channeling it into Bitcoin mining operations. This would not only generate substantial foreign revenue for Nepal Electricity Authority but also strengthen the country's foreign currency reserves. A state-owned or public-private partnership (PPP) model for "Green Bitcoin" mining could be established.
The royalty and revenue generated from this initiative should be transparently allocated, with a bold commitment to invest 100% into public health and education. Just as oil wealth funds social programs in Norway, Nepal's crypto mining revenue could fund free cancer treatments, modernize hospitals, and provide free education up to the university level. This direct benefit would give citizens a tangible stake in the country's digital future.
Furthermore, following the example of the United States (with stablecoins like USDC), Nepal should consider issuing its own stablecoin, pegged 1:1 to the Nepali Rupee (NPR 1). Just as 1 USDC always equals 1 USD, a Nepal government-backed digital currency or stablecoin would ensure a stable digital representation of the NPR in the global crypto market. This would revolutionize remittances, allowing Nepalis working abroad to send money home instantly, cheaply, and transparently without hefty fees.
While the Nepal Rastra Bank (NRB) currently prohibits cryptocurrencies and is exploring its own Central Bank Digital Currency (CBDC), the success of Bhutan, Singapore, and El Salvador demonstrates that clear regulation, not outright bans, is the path forward. By adopting Bhutan's "Green Bitcoin" model and creating a clear legal framework, Nepal's new government can leapfrog into a new era of economic prosperity. The time to embrace innovation is now.$BTC
