Bhutan, the small kingdom known for measuring Gross National Happiness, has reportedly been operating a Bitcoin mining operation using its abundant hydroelectric resources. According to Forbes, Bhutan started developing state-run mining operations in 2020 to use the country's hydroelectric plants to power Bitcoin mining machines, which solve complex mathematical problems to earn Bitcoin rewards.

Bhutan is also reportedly in talks with Nasdaq-listed mining company Bitdeer for a potential collaboration to boost mining capacity. Additionally, the state-owned holding company, Druk Holding & Investments, has reportedly invested millions in cryptocurrencies without public disclosure. In a separate development, Bhutan's central bank has partnered with Ripple to pilot a central bank digital currency (CBDC) using Ripple's CBDC solution to facilitate efficient retail, cross-border, and wholesale transactions for a digital Ngultrum. The project aims to extend financial inclusion to 85% of its population by 2023.