Bhutan teams up with Binance for national tourism payment system

Bhutan has become the first nation to enable crypto payments for tourism at a national scale, partnering with Binance Pay and DK Bank.

Bhutan, a landlocked country in south-central Asia, is now accepting crypto payments through a new national-level tourism system powered by Binance Pay and DK Bank, which Binance calls the world’s first of its kind.

The initiative allows travelers with Binance accounts to pay for nearly every part of their journey using crypto. This includes airline tickets, visa fees, hotel stays, monument entry, tour guides, and even “fresh fruit from roadside stalls,” according to a Wednesday announcement.

Binance says more than 100 local merchants have already been onboarded, though it didn’t name specific businesses accepting crypto. According to the announcement, visitors can pay by scanning dynamic or static QR codes via the Binance app, with support for over 100 cryptocurrencies including Bitcoin (BTC) and USD Coin (USDC). While tourists pay in crypto, merchants still receive in local currency, as all transactions are settled through DK Bank, Bhutan’s digital bank licensed by the Royal Monetary Authority of Bhutan.

Binance CEO Richard Teng said the company is proud to be involved as the exchange is “setting a precedent for how technology can bridge cultures and economies.”

In mid-April, Bhutanese prime minister Tshering Tobgay called state-backed Bitcoin mining “a simple strategic choice that many people have made and earned billions of dollars,” adding that “governments should do it [crypto mining].” Per reports, Bhutan is facing several economic issues, including high youth unemployment and a growing number of skilled workers leaving the country. In 2022, more than 10% of the educated population emigrated.

The exact size of Bhutan’s BTC holdings remains unclear, though data from different blockchain analytics firms implies that it could be worth more than $600 million, or about 30% of the country’s GDP.