Bhutan commits to acquiring up to 10,000 BTC as part of its Bitcoin Development Strategy, focusing on hydro mining and long-term asset holding to support the development of Gelephu Mindfulness City and promote youth-centric growth.
Summary
- King Jigme Khesar initiates a national Bitcoin Development Pledge based on three key pillars: hydro-powered mining, citizen-oriented BTC deployment, and partnerships via Gelephu Mindfulness City.
- Bhutan aims to acquire and hold over 10,000 BTC in national reserves, exploring strategies like collateralization, risk-managed yield, and treasury management to sustain and enhance national wealth.
- Funds from mining and BTC-backed financing will focus on youth employment, technological and clean industry skills, and fostering financial resilience, complementing gold-backed TER tokens and blockchain IDs for 800,000 citizens.
The Kingdom of Bhutan revealed a national Bitcoin Development Pledge on Wednesday, detailing a three-phase strategy intended to unfold over the coming decades, as mentioned in an official statement.
This pledge aspires to deliver economic growth and job creation benefits from cryptocurrency value appreciation to its citizens, the statement detailed. The initiative is rooted in the establishment of Gelephu Mindfulness City (GMC), a Special Administrative Region aimed at creating an economic center in southern Bhutan that emphasizes mindfulness, sustainability, and innovation.
During the announcement, King Jigme Khesar Namgyel Wangchuck spoke on the nation’s advancements in Bitcoin (BTC) and emerging technologies. “As your King, I commit to ensuring every Bhutanese is a custodian, stakeholder, and benefactor of GMC,” he asserted. “We are developing a new land policy that safeguards landowners, mitigates growing disparities, and guarantees shared national prosperity.”
The King likened GMC to an organization with landowners as shareholders, emphasizing that most land is state-owned, allowing all Bhutanese citizens to partake in its success.
The government pledged to acquire over 10,000 Bitcoins for its sovereign reserves in support of the Bitcoin Development Pledge. “To reinforce this policy, I am announcing today the allocation of up to 10,000 Bitcoin. This commitment stands for our people, our youth, and our nation,” said King Jigme Khesar Namgyel Wangchuck.
The pledge is built on three foundational pillars, according to the statement. Firstly, the country will harness its hydroelectric power reserves to mine Bitcoin, transforming clean energy into national advantage. Secondly, Bitcoin mined or obtained will be utilized to enhance economic and social conditions for citizens. Lastly, the initiative invites both domestic and international partners to collaborate on building the Bitcoin Development Strategy through trust and long-term engagement.
GMC is currently assessing pathways for sustainable growth, with decisions expected shortly, as mentioned in the statement. Strategies under evaluation include collateralizing the Kingdom’s Bitcoin assets, risk-managed yield and treasury approaches, and long-term holding methodologies aimed at asset value retention.
The strategy will be guided by governance principles focused on capital preservation, suitable oversight, and transparency, as per the announcement. The approach aims to prioritize the long-term value of Bitcoin over the decades, delivering tangible economic and social benefits, especially for the nation’s youth population.
Bhutan intends to channel proceeds from Bitcoin mining into creating job opportunities for young people, fostering skills in technology, finance, and clean industries, and enhancing the nation’s long-term financial stability, the statement remarked.
Bhutan and Bitcoin: a love story
This pledge also emphasizes collaboration with organizations and individuals aligned with its objectives, bolstering engagement with international fintech and digital asset partners for participation in Gelephu Mindfulness City development. As a Special Administrative Region, GMC is being established to offer regulatory clarity, modern financial interoperability, and a space for collaboration and growth, according to the announcement.
Bhutan has emerged as the first sovereign nation to adopt a Bitcoin mining strategy, utilizing renewable energy resources for Bitcoin mining and accumulating assets in its national reserves through eco-friendly operations, as previously reported.
Recently, the country unveiled a sovereign-backed digital token tied to physical gold, enabling investors to buy and own tangible gold. Bhutan also announced a national digital identity system based on public blockchain technology, allowing nearly 800,000 citizens to authenticate their identities and access public services. Through GMC, an initiative was launched enabling merchants to accept cryptocurrency payments via Binance Pay, as per separate announcements.
