Bhutan Boosts Tourism Economy through Crypto Payments Integration with Binance Pay & Local Bank

The remote Kingdom of Bhutan has revealed that it will be integrating cryptocurrency payments into its tourism sector. This bold move is set to modernize the economy of Bhutan and bring in a new generation of tech-savvy travelers.

Cryptocurrency Payments and Bhutan’s Tourism Sector

Damcho Rinzin, the Director of Bhutan’s Department of Tourism, made this announcement during a panel discussion at Binance’s Crypto-Powered Tour. He recognized that the country’s edges in the tourism sector have often been hampered by the inadequate payment infrastructure of the country. On May 7, Binance Pay created a partnership with the local bank, DK Bank, which now allows users to pay for their expenses within Bhutan using cryptocurrency. This groundbreaking step was met with enthusiasm by savvy travelers and crypto enthusiasts across the globe. DK Bank president, Ugyen Tenzin, confirmed that almost 1,000 merchants nationwide had been onboarded to accept the new method of payment. This information was disclosed during a panel discussion, marking a significant change in the typically traditional financial landscape of Bhutan.

Enhancing the Payment Infrastructure

Taking into account feedback from tourists, Rinzin explained how the conventional bank wire transfers were widely seen as outdated. Drawing upon this feedback and observing the global shift towards digital currencies, Rinzin has embraced the integration of crypto, projecting it will enable Bhutan to become more accessible to modern travelers. Moreover, it will eliminate friction in its previously clunky payment system. In an interesting take, Rinzin also views embracing cryptocurrency as a positive branding opportunity for Bhutan, particularly the showcasing of Bhutan as a welcoming country. He emphasized the importance of being open to different types of tourists and highlighted how accepting cryptocurrency reflects the countrys forward-thinking vision. He further explained how initiating these changes signals an openness to sustainable and mindful tourism to young, forward-looking visitors.

Attracting Crypto enthusiasts

Rinzin shared the country’s modest target of introducing 300,000 users annually to the benefits of crypto. He expressed hope that DK Bank’s partnership with Binance Pay will aid the tourism sector significantly, attracting a portion of the crypto exchanges millions of users to visit would boost the local economy. He also made a comparison between the fees associated with crypto payment and traditional banking systems. With near-instant payments and lower fees, cryptocurrency payments will bring greater efficiency compared to the existing payment systems in Bhutan.

Implications on Digital Inclusion

Rinzin added that digital inclusion will significantly benefit the people, not just in the tourism industry, but also in various other industries. Carissa Nimah, chief marketing officer of Bhutan’s Department of Tourism, shared similar sentiments during a roundtable discussion with the media. She depicted Bhutan as traditional and authentic, yet focused and visionary. She reasoned that the move to accept crypto aligns with the kingdom’s evolving identity and signifies the country’s readiness to welcome a new age of traveler, those with an interest in using crypto as a viable payment method. The crypto integration is seen as a part of a broader vision in Bhutan with major projects like the Gelephu Mindfulness City. Nimah believes cryptos would play a significant role in this city.

Challenges in Crypto Adoption

Despite the positive enthusiasm around the integration of cryptocurrency, the reality of adoption is a progressive journey. Several local merchants, who have been onboarded into the program, shared with the local news outlet that they have yet to see a substantial number of customers using the newly introduced payment option. Local tour guides have also expressed doubts about being able to handle a purely crypto approach when visiting Bhutan. The consensus is that a combination of crypto, cash, and credit cards is still the safest and most efficient way to navigate the local economy. Despite these initial challenges, Bhutan’s readiness to adapt and embrace evolving digital payment trends underscores the country’s commitment to economic development and tourism growth. The Kingdom of Bhutan, renowned for its stunning landscapes, vibrant culture, and Gross National Happiness index, will now also gain prominence as one of the front-runners embracing cryptocurrency.