Bhutan Unveils World’s First Nationwide Crypto-Powered Tourism System

Bhutan has partnered with Binance Pay and local bank DK Bank to launch a fully integrated, nation-wide cryptocurrency payment system designed to meet the needs of travellers.The system will allow tourists to pay in crypto using their Binance app after scanning vendor QR codes, reducing issues with foreign exchange fees and patchy support in remote areas.The Bhutan government currently holds the third-largest amount of BTC of any national government: it has been mining Bitcoin through its investment arm since 2018.The small Himalayan nation of Bhutan, best known for being the happiest nation on Earth, has partnered with Binance Pay and the local Bhutanese bank, DK Bank, to launch a nation-wide “fully integrated, end-to-end crypto payment system” specially designed to meet the needs of travellers. The system, announced on May 7, is the first of its kind to be implemented on a national scale and will allow travellers visiting Bhutan to pay for goods and services in one of over 100 supported cryptocurrencies.Over 100 Bhutanese vendors have adopted the system — including airlines, hotels, government agencies and tour operators — meaning visitors will be able to meet most of their needs using cryptocurrencies. As long as they have a Binance account, that is.The system will use QR codes to charge customers’ wallets inside their Binance app. Binance said the payments would be settled “instantly in local currency through DK Bank”.Bhutan is known for its low-impact approach to tourism, but the sector was hit hard when the Covid pandemic struck. The country has since embraced new measures to revive its tourist economy, including halving the daily levy it charges travellers (aka Sustainable Development Fee), influencer marketing, and launching an official booking portal. Tourism picked up in the fourth quarter of 2024, with tourist numbers surging 145% and revenue from the Sustainable Development Fee increasing by 157%.Damcho Rinzin, Director of Bhutan’s Department of Tourism, said the new crypto payment system wouldn’t only be good for travellers, but would spark innovation and boost financial inclusion in Bhutan: This is more than a payment solution – it’s a commitment to innovation, inclusion, and convenience. Damcho Rinzin, Director of Bhutan’s Department of Tourism Binance’s blog about the system stated: “This approach not only simplifies travel logistics but also removes some of the most persistent pain points in cross-border tourism, such as high transaction and currency exchange fees, and limited acceptance of international cards.”Related: Government of Bhutan Transfers $63M of Bitcoin to 3 WalletsBhutan Has Strong History with CryptoBhutan may be one of the world’s smallest nations, but it has punched well above its weight when it comes to crypto adoption.According to Arkham Intelligence, the government of Bhutan currently has the third-largest Bitcoin bag of all national governments — 12,061BTC valued at over US$1.2 billion (AU$1.87 billion) — behind only the US and UK governments. However, unlike the US and UK governments, both of which seized most of their Bitcoin from criminals, Bhutan acquired most of its Bitcoin through its government-backed Bitcoin mining operation which is managed by the government’s investment arm, Druk Holding and Investments.Image source: Arkham IntelligenceBhutan began mining Bitcoin in 2018, taking advantage of the nation’s hydroelectric energy infrastructure to harness the torrent of glacial meltwaters during the summer to power a seasonal surge in Bitcoin mining. Related: Crypto Soars as BTC Nears $100k while US Fed Keeps Interest Rates SteadySpeaking to The World in March, Ujjwal Deep Dahal, CEO of Druk Holding and Investments, described this surge in Bitcoin mining as something of a financial battery, storing value which can be used by the government when the meltwaters recede in winter and energy becomes scarce. “So theoretically, you could be generating Bitcoin in the summer which can hedge your energy security during winter,” Dahal said. “It is a foreign currency reserve for us.”The post Bhutan Unveils World’s First Nationwide Crypto-Powered Tourism System appeared first on Crypto News Australia.