Bhutan plans to utilize 10,000 Bitcoin from its reserves to finance the construction of its special administrative region, the Gelephu Mindfulness City (GMC).
Situated in Gelephu, Southern Bhutan, GMC was launched in 2024 as Bhutan’s new economic center aimed at curbing the migration of young Bhutanese by creating high-value local employment opportunities.
The initiative is designed to draw in businesses across various sectors, such as finance, tourism, green energy, technology, healthcare, and agriculture.
This city offers regulatory flexibility for crypto and fintech enterprises and serves to enhance Bhutan’s Bitcoin (BTC) mining endeavors. It spans approximately 10% of the country’s landmass, or around 1,544 square miles, according to its website.
Utilization of Bitcoin for Bhutan’s GMC Funding
A variety of strategies are being evaluated for the $875 million in Bitcoin (BTC), including risk-managed yield, treasury strategies, and long-term holding methods designed to safeguard the asset’s value, the country announced on Wednesday.
The priority is to maintain Bitcoin’s long-term potential while ensuring steady and sustainable development. “Bitcoin’s lasting strength lies in its capacity to compound value over time,” it stated, adding:
“Any use of Bitcoin will be governed by strong oversight and prudence, focusing on capital preservation, appropriate controls, and transparency.”
Bhutan holds the fifth-largest reserve of Bitcoin among nations, primarily sourced from mining. Bitbo estimates the kingdom possesses around 11,286 coins, valued at over $986 million.
Bitcoin-Driven Development as a Key Government Policy
The initiative to utilize Bitcoin for the Gelephu Mindfulness City aligns with the broader national Bitcoin Development Pledge, which aims to bolster Bhutan’s long-term economic growth through its Bitcoin reserves and mining activities.
Related: Bhutan enhances its green Bitcoin approach with Cumberland-backed infrastructure
King Jigme Khesar Namgyel Wangchuck emphasized his objective to ensure that the entire population of over 796,682 reaps the benefits of the GMC.
“We are thus formulating a new land policy to protect landowners, mitigate widening disparities, and guarantee shared national prosperity,” he stated.
“View GMC as a corporation with landowners as shareholders. As most land is government-owned, all Bhutanese from various Dzongkhags will partake in its success.”
A masterplan and legal framework for the GMC have been rolled out, along with the establishment of a board of directors and a governor. Construction has commenced to clear and prepare site areas.
The special administrative region facilitates crypto-based transactions across retailers and tourism services, and has introduced TER, a sovereign-backed digital token tied to physical gold.
Envisioned as an economic corridor that connects South Asia to Southeast Asia, it will possess executive authority and legal independence, according to King Khesar, and will be developed in phases over the next 20 years.
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