Bhutan Embraces Crypto Payments Amid Digital Challenges

The Kingdom of Bhutan is finally embracing the future of digital finance and cryptocurrencies. The people of this humble country have fully integrated crypto into their daily lives. The ability to pay using Bitcoin, BNB, USDT, and other digital assets has quickly become a reality. All of this was made possible by the collaboration between Binance Pay and Bhutan’s DK Bank.

This collaboration allows users with existing Binance accounts to pay for services such as tourist visas, hotel bookings, Bhutan’s Sustainable Development Fee, flights, and even daily items such as snacks. According to Ugy Gelephuin, President of DK Bank, nearly 1,000 merchants across the country have already adopted the system.

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The local people are eager to adopt crypto payments in their daily lives. There is ease of payment and lower transaction fees associated with crypto, something that Bhutan’s monarchy has played a key role in fostering technological innovation.

Indeed, under the leadership of King Jigme Khesar Namgyel Wangchuck, known locally as the “Dragon King,” Bhutan has pursued a progressive stance on digital assets. The country's plans include a state-backed hydro-powered Bitcoin mining program that started as early as 2019, when Bitcoin was worth only $5,000. Bhutan already has more than 12,000 BTC. In early 2024, it said it will build a strategic crypto reserve as part of the Gelephu Special Administrative Region (SAR), which is also known as Gelephu Mindfulness City (GMC).

But Bhutan has a big problem with its internet connection: it's not stable. Cointelegraph reporters had a lot of problems in both Thimphu and Paro, and local Reddit boards say the same thing. One user remarked, "The internet connection in Bhutan is horrendously slow," which shows how hard it is to make crypto transactions without any problems in these settings.

However, there is a glimmer of hope. On February 17, satellite internet provider Starlink officially launched in Bhutan. With expected speeds between 100–200 Mbps, Starlink is seen as a game-changer for Bhutan’s digital infrastructure. “Speed is essential for crypto payments,” noted Gelephuin during a media roundtable, adding that while Bhutan is still developing its digital foundation, the country is “on the right track.” As Bhutan navigates its journey between tradition and technology, its quiet but determined embrace of crypto could serve as a model for other small nations looking to leapfrog into the digital future, one token at a time.