By businessbhutan Canada Fund
With Binance Pay partnership and blockchain pilots, the Kingdom positions itself as a future-ready digital economy
In a bold stride toward digital transformation, Bhutan is accelerating the adoption of cryptocurrency and blockchain technologies to modernize its financial ecosystem, diversify the economy, and attract a new wave of tech-savvy global travelers.
The latest development in this strategic shift is the official launch of Bhutan鈥檚 partnership with Binance Pay鈥攖he global cryptocurrency payment arm of Binance, the world鈥檚 largest blockchain and crypto ecosystem. Marking the occasion, Binance CEO Richard Teng visited Bhutan this week, accompanied by a group of international influencers and fintech leaders, to witness firsthand how digital payments are reshaping tourism and commerce in the Kingdom.
Since the announcement of the partnership in May 2025, Bhutan has seen a tenfold surge in crypto-accepting merchants, from just 100 businesses to over 1,000 nationwide. From boutique hotels and rural homestays to handicraft markets and cafes, visitors can now pay using their Binance Pay wallets, making Bhutan one of the most crypto-accessible destinations in the world.
鈥淭his rapid progress reflects Bhutan鈥檚 commitment to innovation and its people鈥檚 openness to new technologies,鈥 said Richard Teng. 鈥淐rypto is not just a tool for payment it鈥檚 a bridge that connects people, empowers local economies, and unlocks new economic potential.鈥
The launch campaign includes curated travel experiences across Bhutan, where influencers are using crypto exclusively to highlight the viability of digital payments across various sectors. Teng emphasized that Bhutan鈥檚 model could inspire other nations seeking to combine cultural authenticity with digital innovation.
While the crypto push is ambitious, Bhutan still grapples with infrastructure gaps. Internet connectivity, critical for real-time blockchain transactions, remains inconsistent, particularly in rural and mountainous areas. As of 2024, the Bhutan InfoComm and Media Authority (BICMA) estimated national internet penetration at just over 75%.
To overcome these limitations, the government, through Druk Holding and Investments (DHI), is developing lightweight, offline-compatible crypto solutions. These include point-of-sale terminals and digital wallets that can queue transactions until connectivity is restored. The effort is part of a broader public-private strategy that includes earlier collaborations with companies like Bitdeer on crypto mining and blockchain infrastructure.
Meanwhile, the Royal Monetary Authority (RMA), Bhutan鈥檚 central bank, is actively exploring regulatory frameworks through a digital asset sandbox to ensure security, compliance, and financial stability.
Cryptocurrency is seen as a transformative tool for expanding financial inclusion, particularly in rural Bhutan where traditional banking access remains limited. Mobile-based crypto wallets could empower farmers, artisans, and entrepreneurs to conduct peer-to-peer transactions, access wider markets, and reduce reliance on costly intermediaries.
Crypto also offers a promising solution for cross-border remittances. With thousands of Bhutanese living abroad, blockchain-based remittance platforms provide a low-cost, efficient alternative to conventional money transfer services potentially increasing inflows and reducing transaction losses.
Tourism, a cornerstone of Bhutan鈥檚 economy, is another key beneficiary of crypto adoption. Under the nation鈥檚 鈥渉igh-value, low-volume鈥 tourism model, enabling digital payments for services such as Sustainable Development Fee (SDF) charges, hotel bookings, and tour packages is expected to improve visitor convenience and attract a more tech-oriented demographic.
The integration of the Bhutan National Digital Identity (NDI) project, launched in 2024, with blockchain platforms is also expected to enhance trust, security, and data efficiency across the tourism and financial sectors.
The government鈥檚 broader vision is anchored in the forthcoming Gelephu Mindfulness City (GMC) Special Administrative Region (SAR) a flagship project aimed at building a sustainable, innovation-driven economic hub where digital technology will play a central role.
While the pace of innovation is accelerating, Bhutanese regulators remain cautious. The RMA has not formally endorsed cryptocurrencies like Bitcoin or Ethereum but is studying their application in a phased, controlled environment.
Officials stress the need for gradual adoption, supported by robust regulation to mitigate risks such as volatility, misuse, and financial exposure. International best practices, legal safeguards, and a predictable policy environment are considered essential to building investor confidence and public trust.
Bhutan鈥檚 foray into cryptocurrency and blockchain is more than a tech upgrade it is a deliberate shift in its economic narrative. The Kingdom, long guided by the principles of Gross National Happiness (GNH), is demonstrating how emerging technologies can align with social well-being and sustainable growth.
If successful, Bhutan could become a global reference for how small, infrastructure-challenged nations can leapfrog into digital finance and resilient economic models balancing tradition with innovation, and connectivity with inclusion.
Tashi Namgyal from Thimphu