Bhutan is making history as one of the most active state players in the crypto market. The Himalayan kingdom has announced plans to use 10,000 bitcoins from its national reserves to fund the development of Gelephu Mindfulness City (GMC), an ambitious new economic hub designed to reshape the country’s future.

Bhutan holds nearly one billion dollars in bitcoin

According to estimates by analytics platform Bitbo, Bhutan holds approximately 11,286 bitcoins worth more than $986 million. This places the country among the five largest known state holders of bitcoin globally. Most of these holdings come from domestic mining operations powered by renewable energy sources.

The government now plans to allocate 10,000 BTC, valued at roughly $875 million, specifically to finance the development of Gelephu Mindfulness City.

Gelephu Mindfulness City as a new economic engine

Gelephu Mindfulness City was officially established in 2024 in the southern city of Gelephu. The project aims to curb the outflow of young Bhutanese citizens abroad and create highly skilled, well-paying jobs domestically.

Designed as a new economic center, GMC seeks to attract companies from finance, tourism, green energy, technology, healthcare, and agriculture. According to official figures, the project will cover around 10% of Bhutan’s total land area.

Crypto- and fintech-friendly regulation

Regulatory flexibility is a cornerstone of the project. As a special administrative region, GMC offers a welcoming environment for crypto and fintech companies while also supporting further development of bitcoin mining in Bhutan.

In practice, cryptocurrency payments are already accepted by merchants and tourism services within GMC. The ecosystem also includes TER, a sovereign digital token backed by physical gold, intended to complement the local financial infrastructure.

How Bhutan plans to manage its bitcoin reserves

The Bhutanese government emphasizes that it will not take a short-term approach to managing its bitcoin reserves. Instead, it is considering a mix of yield-generating strategies, treasury management frameworks, and long-term holding to preserve and gradually grow the value of its digital assets.

“The main priority is to preserve the long-term potential of bitcoin while ensuring stable and sustainable urban development,” the government said, highlighting bitcoin’s ability to accumulate value over time.

Bitcoin as part of national strategy

Using bitcoin to fund GMC aligns with Bhutan’s broader National Bitcoin Development Pledge, a strategy designed to support long-term economic growth through bitcoin reserves and mining activities.

King Jigme Khesar Namgyel Wangchuck has repeatedly stressed that the project should benefit Bhutan’s entire population of more than 796,000 people. “We are preparing a new land policy that protects landowners, prevents widening inequality, and ensures shared national prosperity,” the king said.

A clear roadmap and legal framework

Bhutan has already unveiled a detailed roadmap and legal framework for Gelephu Mindfulness City. A governing board and regional governor have been appointed, and initial construction work focusing on land preparation has begun.

GMC also aims to become an economic corridor linking South Asia and Southeast Asia. The region will enjoy significant autonomy and legal independence, with development planned in phases over the next 20 years.

Sources:

https://www.dailysabah.com/business/bhutan-unveils-100m-bond-for-mindfulness-city-project/news

https://gmc.bt

https://bitbo.io/treasuries/countries/

https://gmc.bt/pledge

https://gmc.bt/about

https://thediplomat.com/2024/01/gelephu-the-worlds-first-mindfulness-city-is-in-bhutan/