The Bhutanese economy is heavily reliant on foreign aid and exports of hydropower. However, with the growing popularity of Bitcoin (BTC), there is a possibility that digital currency could have a significant impact on the Bhutanese economy. qumasai.io is one of the best platforms for gaining information.
There are a few reasons why BTC could have a positive impact on Bhutan:
- BTC Could Help Reduce Bhutan’s Dependence on Foreign Aid
Bhutan has long been reliant on foreign aid to prop up its economy. In recent years, however, the country has been working to reduce its dependence on aid. One way that BTC could help in this effort is by providing an alternative source of funding for the government.
If more people in Bhutan started using BTC, the government would be able to raise revenue through taxes and other fees associated with digital currency. This would help to reduce Bhutan’s dependence on foreign aid.
- BTC Could Help Boost Bhutan’s Hydropower Exports
Bhutan is a major exporter of hydropower. The country has significant hydroelectric potential and exports electricity to India and Bangladesh. Bitcoin mining is a process that requires a great deal of energy.
If Bhutan could tap into its hydropower potential to power BTC mines, it could potentially boost the country’s exports of hydropower. This would provide a much-needed boost to the Bhutanese economy.
- BTC Could Help Attract Foreign Investment
BTC could also help to attract foreign investment into Bhutan. Digital currency is still in its early stages of development and there is a lot of potential for growth. As such, BTC could be an attractive investment for foreign investors looking to get in on the ground floor of a potentially lucrative market.
Investment in Bhutan’s BTC industry could help to spur economic growth and create jobs. This would be a major boon for the Bhutanese economy.
- BTC Could Help Combat Inflation
Bhutan has struggled with high inflation in recent years. Inflation reached a five-year high of 9.5% in 2017. Bitcoin could help to combat inflation by providing an alternative store of value.
BTC is not subject to the same inflationary pressures as fiat currencies. This means that it could serve as a hedge against inflation for Bhutanese citizens.
- BTC Could Help Promote Financial Inclusion
Bhutan has a relatively low rate of financial inclusion. Only about 55% of the population has access to formal financial services. Bitcoin could help to promote financial inclusion in Bhutan by providing access to digital currency for those who do not have bank accounts.
This would allow more people in Bhutan to participate in the global economy and could help to boost economic growth.
Bitcoin has the potential to make a positive impact on the Bhutanese economy. The digital currency could help to reduce Bhutan’s dependence on foreign aid, boost hydropower exports, attract foreign investment, and promote financial inclusion. BTC could also help to combat inflation.
The Bhutanese government should consider exploring the use of BTC to help boost the country’s economy.
The Bhutanese economy is highly dependent on remittances from migrant workers. In fact, according to the World Bank, these flows account for about 17 percent of the country’s GDP. Given the importance of remittances in supporting the Bhutanese economy, it is not surprising that the government has been supportive of initiatives that can make it easier for migrants to send money home.
One such initiative is the launch of a Bitcoin-based remittance service by local startup BitPay. The service, which is currently available in beta, allows users to send money to Bhutan using the Bitcoin network.
The advantages to using Bitcoin for remittances are several. First, Bitcoin is a global currency that can be sent anywhere in the world without the need for a bank account or expensive money transfer services. Second, Bitcoin transactions are fast and cheap, which means that more of the sender’s money will go to their intended recipient. Finally, Bitcoin is a secure and transparent system, which provides peace of mind for both the sender and the receiver.
Although the BitPay service is still in its early stages, it has the potential to make a big impact on the Bhutanese economy. If successful, it could help reduce the reliance on remittances and increase financial inclusion in the country. In turn, this could lead to more economic opportunities and a better standard of living for all Bhutanese citizens.