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Nine months after Bhutan launched a nationwide crypto payment network with more than 1,000 enrolled merchants, shopkeepers in the capital Thimphu say tourists are not using it — and many do not know it exists.
Introduced as a first-of-its-kind national crypto payment network in partnership with Binance, the Bhutan crypto experiment enabled visitors to pay for visas, flights, hotels and meals using digital assets.
While more than 1,000 merchants initially signed up, many say usage has been minimal, raising questions about who ultimately benefits from the initiative.
Nine months into the rollout, QR codes for crypto payments remain visible in parts of Thimphu and other tourist hubs, but several shopkeepers report no transactions. The Bhutan crypto experiment was promoted as a way to modernize tourism payments and leverage the country’s growing bitcoin reserves. On the ground, however, adoption appears slow.
In Thimphu, businesses that enrolled in the Bhutan crypto experiment describe a gap between policy ambition and customer behavior. At Lotus Peak Enterprise, a handicraft store located on the premises of the Le Meridien hotel, staff say the crypto payment option has gone largely unused.
“It has been four to five months, but no customer has used it until now,” — Sonam Dorji, Lotus Peak Enterprise.
Dorji added that awareness remains low among tourists. “No one knows that we accept cryptocurrency and Binance Pay,” he said.
Other businesses echo similar experiences. At Ambient Cafe, one of Thimphu’s oldest eateries, owner Junnu Chhetri said some foreign guests have used Binance-linked payments but that the establishment does not track daily usage closely. For many merchants, the Bhutan crypto experiment appears more symbolic than transformative.
Under the current system, crypto payments are instantly converted into Bhutan’s national currency, the ngultrum, reducing exposure to volatility. Officials have framed the setup as a payment gateway rather than a shift toward holding digital assets. Even so, everyday use remains limited.
Observers say the Bhutan crypto experiment is closely linked to the country’s broader digital asset strategy. Bhutan began mining bitcoin in 2019, capitalizing on its abundant hydroelectric power generated by rivers and mountainous terrain.
With a population of fewer than one million and relatively low domestic electricity consumption, surplus renewable energy has been directed toward crypto mining.
In October 2024, Bhutan’s bitcoin reserves reached $1.4 billion, making it the world’s largest state-backed green-mined reserve. Unlike countries such as the United States or China, which have accumulated bitcoin through purchases or asset seizures, Bhutan’s holdings stem largely from mining operations.
Jay Zagorsky, a professor at Boston University’s Questrom School of Business, said the government’s interest in digital payments is understandable given its reserves.
“Mining bitcoin gives Bhutan a currency to purchase imports that it didn’t have before, so I understand why the political establishment in the country wants to go for digital payments,” — Jay Zagorsky, Professor, Boston University Questrom School of Business.
However, he questioned whether the broader Bhutan crypto experiment aligns with domestic realities. “However, just because the central bank is pushing Bhutan society toward digital payments does not make it sensible,” he said.
Infrastructure and literacy challenges may limit the expansion of the Bhutan crypto experiment beyond tourism. Approximately one-third of Bhutan’s population is not literate, according to experts cited in reporting, complicating efforts to scale digital payment systems that require navigation of apps and QR codes.
Power reliability also poses a constraint. A government report indicates that the typical customer experiences 19 power cuts per year due to factors under utility companies’ control. World Bank data shows that one-fifth of Bhutanese businesses own or share a generator.
“Using crypto as legal tender means items like bitcoin need to be accepted by all types of businesses, from large to very small, at all times for any debt,” — Jay Zagorsky, Professor, Boston University Questrom School of Business.
He added that “Countries with shaky infrastructures and low rates of literacy are not the best places for introducing new types of legal tender.”
Comparisons have been drawn to El Salvador, which made bitcoin legal tender in 2021 but reversed the policy in 2025 amid economic strain and pressure from international institutions. The Central African Republic similarly withdrew its bitcoin legal tender status within a year.
Experts caution, however, that the Bhutan crypto experiment differs in key respects. The system does not designate bitcoin as legal tender, and merchants receive immediate fiat conversion. The initiative is largely confined to tourism and has not yet expanded significantly into other sectors.
Ugyen Dendup, co-founder of Bhutan’s first AI startup NoMindBhutan, said broader rollout remains limited. “Initially, there was talk about expanding crypto payments to other sectors, but in practice, I haven’t seen this happen in any significant way yet,” — Ugyen Dendup, Co-founder, NoMindBhutan. He added that “At the market or business level, tourism is the only sector where this conversation is visible, and even there, adoption remains limited.”
Dendup also noted regulatory ambiguity. “It exists in a kind of gray area: Some people push for it, some are cautious, and enforcement or guidance isn’t very clear,” he said.
As the Bhutan crypto experiment approaches its first anniversary, its future may depend less on bitcoin reserves and more on infrastructure readiness and consumer awareness. For now, the initiative remains an ambitious policy experiment facing practical constraints in everyday use.
First reported by Ananya Bhattacharya of Rest of World.
