The Kingdom of Bhutan, a small Himalayan country, takes a decisive step towards the digitalization of its economy by implementing a national cryptocurrency payment system for tourists. In partnership with Binance Pay and the local digital bank DK Bank, Bhutan has become the first country in the world to integrate cryptocurrencies into its national tourism industry. This initiative aims to attract wealthy travelers, simplify cross-border payments, and strengthen the country's economic resilience.
Bhutan, known for its Gross National Happiness philosophy, aims to balance innovation with the preservation of cultural traditions. As part of the program presented at the Digital Bhutan panel supported by Binance, the country's authorities announced the launch of a system that will allow tourists to pay for virtually all services - from air tickets and visas to local market purchases - using more than 100 cryptocurrencies, including Bitcoin (BTC), Binance Coin (BNB), and USDC. Over 1,000 local merchants, including small entrepreneurs in remote regions, have already joined the system via QR codes, making the payment process convenient and accessible.
"Tourists complain about the difficulties of using SWIFT and traditional payment systems. Binance Pay solves this problem," noted Damcho Rinzin, director of Bhutan's Department of Tourism. According to him, travelers are already using cryptocurrencies to buy local goods, including self-catering products.
The initiative aims to attract "high-income" tourists, who spend an average of $1,000 per trip — almost three times more than regular travelers. Binance Pay's zero fees compared to the high charges of traditional payment systems allow local merchants to receive instant settlements, minimizing costs. This is particularly important for small businesses in rural areas where traditional financial infrastructure is limited.
Bhutan is also strengthening its position in the crypto industry thanks to significant reserves of digital assets. According to sources, the state Bitcoin reserve is approximately $1.3 billion, equivalent to almost 40% of the country's GDP, making Bhutan the third-largest BTC holder among states. This strategy, initiated with Bitcoin mining on hydropower in 2020, demonstrates the country's commitment to digital innovation.
DK Bank, Bhutan's first fully digital bank, plays a key role in the project's implementation. The bank provides instant conversion of cryptocurrencies into the local currency (Ngultrum), minimizing volatility risks for merchants. All transactions comply with strict anti-money laundering regulations, and participating companies undergo rigorous checks. This ensures the system's security and stability, which is especially important for a country striving for sustainable development.
According to Richard Teng, CEO of Binance, the project represents a shift from speculative use of cryptocurrencies to creating real infrastructure. "This is the first national cryptocurrency payment system," he emphasized. Bhutan aims for 300,000 tourists a year but is focusing on increasing their spending and stay length.
The initiative could serve as an example for other small economies seeking to integrate digital assets into their development strategies. The Gelephu Mindfulness City project, combining blockchain, culture, and sustainable development, underscores Bhutan's ambitions to become a leader in the digital economy.
The launch of the national cryptocurrency payment system in Bhutan marks a significant step in integrating digital assets into everyday life. Collaboration with Binance Pay and DK Bank not only enhances the country's attractiveness to tourists but also creates a sustainable, tech-oriented ecosystem. The success of this initiative may inspire other countries to take similar steps, demonstrating how small states can leverage cryptocurrencies for economic growth and global competitiveness.