The Kingdom of Bhutan said it plans to deploy 10,000 Bitcoin from its reserves to support development of the Gelephu Mindfulness City (GMC), a special administrative region in the country’s south.
Located in the town of Gelephu, GMC was launched in 2024 as Bhutan’s new economic hub, aimed at curbing the outflow of young citizens by creating high-value jobs at home.
The city is designed to attract companies across a wide range of industries, including finance, tourism, renewable energy, technology, healthcare, and agriculture.
GMC offers regulatory flexibility for crypto and fintech firms and is also positioned as a center for expanding Bhutan’s Bitcoin mining efforts. According to its website, the region spans roughly 1,544 square miles — about 10% of the country’s total land area.
How Bitcoin will fund the project
Bhutan said Wednesday that several approaches are under consideration for managing the roughly $875 million worth of Bitcoin, including risk-managed yield strategies, treasury management, and long-term holding plans intended to safeguard the value of the reserves.
The government emphasized that its priority is to protect Bitcoin’s long-term potential while ensuring the city’s development remains stable and sustainable. “Bitcoin’s enduring strength lies in its ability to compound value over time,” it said, adding:
“Any use of Bitcoin will be guided by strong governance and prudence, with an emphasis on capital preservation, appropriate oversight, and transparency.”
Bhutan holds the world’s fifth-largest national Bitcoin reserve, much of it accumulated through mining. According to Bitbo, the kingdom controls about 11,286 BTC, valued at more than $986 million.
Bitcoin-driven development central to government policy
Bhutan’s plan to fund the Gelephu Mindfulness City with Bitcoin forms part of its broader national Bitcoin Development Pledge, which seeks to leverage the country’s Bitcoin reserves and mining activities to support long-term economic growth.
King Jigme Khesar Namgyel Wangchuck said the initiative is intended to benefit the entire population of more than 796,682 people.
“We are therefore putting in place a new land policy that safeguards landowners, prevents growing inequality, and ensures that prosperity is shared nationwide,” the king said.
“Think of GMC as a company and landowners as its shareholders. Since most land is state-owned, Bhutanese from all Dzongkhags will share in its success.”
A master plan and legal framework for the Gelephu Mindfulness City were unveiled in 2024, alongside the appointment of a governor and a board of directors. Early work is already underway, including site clearing, land preparation, and the renovation of existing buildings.
The special administrative region has introduced crypto-based payments for merchants and tourism services and has also launched TER, a sovereign-backed digital token pegged to physical gold.
According to King Khesar, the city is intended to serve as an economic corridor connecting South Asia and Southeast Asia, operating with executive autonomy and legal independence. Development of the project will roll out in phases over the next two decades.
