The Kingdom of Bhutan has announced plans to utilize 10,000 Bitcoin from its reserves to help develop the Gelephu Mindfulness City (GMC), its special administrative region.
Situated in Gelephu, Southern Bhutan, GMC was launched in 2024 as a new economic center aimed at curbing the migration of young Bhutanese by generating high-value local employment opportunities.
The city is designed to attract businesses across various sectors, such as finance, tourism, green energy, technology, healthcare, and agriculture.
GMC offers regulatory flexibility for cryptocurrency and fintech companies, as well as serving as a hub to enhance Bhutan’s Bitcoin (BTC) mining efforts. The area encompasses approximately 10% of Bhutan, totaling around 1,544 square miles, according to its website.
Utilization of Bitcoin for Funding of Bhutan’s GMC
A variety of strategies are under consideration for the $875 million in Bitcoin (BTC), including risk-managed yield and treasury strategies, as well as long-term holding plans aimed at preserving the value of the reserves, the country disclosed on Wednesday.
The focus will be on maintaining the Bitcoin’s long-term potential while ensuring the development remains stable and sustainable. “Bitcoin’s lasting strength is in its ability to appreciate over time,” the statement added:
“Any application of Bitcoin will adhere to strong governance and prudence, emphasizing capital preservation, appropriate oversight, and transparency.”
Bhutan ranks fifth globally in Bitcoin holdings among countries, much of which has been accrued through mining, with Bitbo estimating that the nation holds approximately 11,286 coins, valued at over $986 million.
Bitcoin-Driven Development as a Key Government Policy
The strategy to leverage Bitcoin for the Gelephu Mindfulness City is part of a broader national Bitcoin Development Pledge, which aims to bolster Bhutan’s long-term economic growth through its Bitcoin reserves and mining activities.
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King Jigme Khesar Namgyel Wangchuck stated his objective is to ensure that the entire population of over 796,682 people benefits from the GMC.
“We are therefore crafting a new land policy that safeguards landowners, curbs widening disparities, and fosters shared national prosperity,” he remarked.
“Envision GMC as a corporation with landowners as its stakeholders. Given that most land is state-owned, Bhutanese individuals from all Dzongkhags will partake in its success.”
A masterplan and legal structure for the GMC have already been revealed, along with the appointment of a board of directors and a governor. Construction has commenced to clear and prepare the site areas.
The special administrative region facilitates crypto-based payments across various merchants and tourism services, and it has launched TER, a sovereign-backed digital token associated with physical gold.
It is envisioned as an economic corridor connecting South Asia to Southeast Asia, with executive autonomy and legal independence, according to King Khesar. The project will be developed in phases over the next 20 years.
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