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Two small nations, El Salvador and Bhutan, have made bold moves into the Bitcoin (BTC) arena, which showcase how cryptocurrency can redefine economic strategies for countries with ambitious leadership and limited resources. Bhutan, through its sovereign investment arm, has amassed Bitcoin holdings worth over $1 billion—more than one-third of its GDP—while El Salvador’s reserves stand at approximately 6,150 Bitcoin, valued at over $550 million. These investments are declarations of faith in Bitcoin’s long-term potential to drive economic transformation and resilience.
Under the visionary leadership of President Nayib Bukele, El Salvador has become a symbol of crypto innovation. Since adopting Bitcoin as a legal tender in 2021, the nation has gained significant global attention and demonstrated the viability of cryptocurrency as a tool for financial inclusion, foreign investment, and economic growth. Bhutan, on the other hand, has taken a more calculated approach—leveraging its abundant hydropower resources to establish itself as a sustainable Bitcoin mining hub. Together, these nations highlight the opportunities Bitcoin offers to those willing to embrace its volatility and bet on its upward trajectory.
El Salvador: A beacon of Bitcoin-powered growth
El Salvador’s Bitcoin experiment has been a cornerstone of President Bukele’s sweeping fiscal and economic reforms. From creating the world’s first legal framework for Bitcoin to launching plans for a tax-free Bitcoin City powered by geothermal energy and funded by $1 billion “Volcano Bonds,” the nation has positioned itself as a crypto trailblazer. These bold initiatives are visionary and rooted in tangible outcomes: El Salvador’s GDP grew by 19% between 2021 and 2023, while its debt-to-GDP ratio dropped from 95% in 2020 to 59% in 2024.
Bitcoin has also transformed the remittance sector, a lifeline for millions of Salvadorans living abroad. The state enabled direct Bitcoin transfers, cutting out traditional intermediaries, lowering fees, and making transactions faster and more accessible. This move alone has saved millions in fees and reinforced Bitcoin’s potential to empower everyday users.
Beyond remittances, El Salvador has witnessed a surge in foreign investment and tourism as crypto enthusiasts and digital nomads flock to the country. Casinos and restaurants increasingly accept Bitcoin as payment, reflecting growing confidence in cryptocurrency’s role in the nation’s economy. While adoption among citizens remains a work in progress, Bitcoin’s rising value has already bolstered the nation’s treasury, proving its worth as a store of value.
Bhutan: Mining Bitcoin for sustainable growth
Bhutan’s approach to Bitcoin has been more methodical and strategic and is focused on mining rather than adoption as a currency. Utilizing its vast renewable hydropower resources, Bhutan has built one of the most efficient Bitcoin mining operations in the world. Druk Holding & Investments, the country’s sovereign fund, has turned Bitcoin into a profitable national asset, with holdings exceeding $1 billion.
Mining Bitcoin with renewable energy both makes Bhutan a model of sustainability and underscores its ability to capitalize on its unique geographical advantages. Such an approach shows how small nations can leverage cryptocurrency in ways tailored to their strengths, creating new revenue streams while minimizing environmental concerns.
Although Bhutan’s foray into Bitcoin has not been without challenges—its involvement with failed platforms like BlockFi and Celsius highlights the risks of overexposure to the crypto market—the country’s leadership has remained committed to using Bitcoin as a tool for long-term growth. Bhutan’s story offers a compelling case for nations exploring Bitcoin as part of a diversified financial strategy.
The bigger picture: Bitcoin as a national reserve
El Salvador and Bhutan’s strategies point to a broader trend: the growing interest in Bitcoin as an alternative to traditional reserve assets like gold or oil. Advocates argue that Bitcoin’s decentralization and fixed supply make it an attractive store of value, immune to inflationary pressures that erode fiat currencies. While critics point to Bitcoin’s volatility as a limitation, these nations are banking on its long-term upward trend to solidify their economic foundations.
President Bukele’s vision for Bitcoin City exemplifies this belief. Designed as a tax-free zone powered entirely by renewable geothermal energy, the city will attract global investment and solidify El Salvador’s position as a Bitcoin hub. Bhutan’s mining operations similarly reflect confidence in Bitcoin’s role as a transformative asset capable of driving national revenue and innovation.
Other nations are taking note. Argentina, under its pro-crypto leadership, is reportedly exploring strategies similar to El Salvador’s Volcano Bonds to stabilize its economy and attract foreign investment. As Bitcoin continues to trend upward, the successes of El Salvador and Bhutan could inspire a new wave of crypto-driven economic policies across the globe.
Balancing Risk and Reward
The bold strategies of El Salvador and Bhutan come with inherent risks. Bitcoin’s volatility remains a challenge, exposing these nations to potential economic shocks during downturns. However, history shows that every emerging technology faces scepticism and cycles of growth before becoming mainstream. These countries are embracing innovation, betting on Bitcoin, and understanding that its transformative potential outweighs short-term uncertainties.
For El Salvador, Bitcoin has already proven its value as a store of wealth, with the treasury benefiting from its significant price rallies. Bhutan’s strategic mining investments similarly highlight the power of Bitcoin to generate sustainable revenue. Both nations demonstrate that, with thoughtful planning and strong leadership, Bitcoin can be more than a speculative asset—it can be a cornerstone of national economic strategy.
Bitcoin’s transformative promise
El Salvador and Bhutan have charted bold paths into the crypto frontier. They showcase how small nations can harness Bitcoin to drive innovation, financial inclusion, and economic growth. And their stories are not just about profiting from Bitcoin’s price rallies but about redefining what is possible when nations commit to decentralized assets as a core component of their economic strategies.
Bitcoin continues its global ascent, and these countries stand as examples of what is achievable through courage and vision. While challenges remain, the success of El Salvador and Bhutan sends a powerful message: Bitcoin is a game changer, not just a gamble. For nations willing to embrace the future, the rewards could far outweigh the risks.
Maksym Sakharov is the group CEO, co-founder, and board member of WeFi, an on-chain, non-custodial neobank. With over eight years of management experience in the IT industry, Maksym brings a diverse skill set encompassing strong leadership, operational excellence, and service delivery. He has served as the CEO and co-founder of Exflow, as well as the founder and CEO of Whitemark. His career spans various environments, from start-ups to established IT development firms, where he has successfully managed operational performance across the Asia Pacific region. His strategic approach to management focuses on optimizing processes and driving team performance, enabling organizations to thrive in competitive markets. Through his extensive experience, Maksym has developed a reputation for fostering collaboration and innovation, making him a valuable asset in any operational setting.