Bhutan Invests 10,000 Bitcoin to Develop ‘Mindfulness City’

The Kingdom of Bhutan has announced plans to utilize 10,000 Bitcoin from its reserves to aid the development of the Gelephu Mindfulness City (GMC), a special administrative region designed to enhance local economic opportunities.

Key Takeaways:

Bhutan will use 10,000 Bitcoin to develop the Gelephu Mindfulness City (GMC).
The GMC aims to create jobs and retain young residents in Bhutan.
The city will attract businesses in multiple sectors, offering regulatory support for crypto and fintech.
Bhutan holds a significant Bitcoin reserve, projected at around 11,286 coins.
The initiative is part of a broader national strategy to leverage Bitcoin for economic growth.

Bhutan pledges 10K Bitcoin to develop its ‘mindfulness city’

Located in Gelephu, Southern Bhutan, GMC was established in 2024 with the goal of becoming Bhutan’s new economic center. The initiative aims to create high-quality jobs and retain the youth within the country. It seeks to attract investments in various sectors such as finance, tourism, renewable energy, technology, healthcare, and agriculture. The city promotes regulatory flexibility for cryptocurrency and fintech firms and is intended to advance Bitcoin mining in the region.

Financing the Gelephu Mindfulness City with Bitcoin

To finance the GMC, Bhutan is considering several investment strategies for its $875 million Bitcoin reserve. These strategies include risk-managed yields, treasury management, and plans to hold the Bitcoin long-term to maintain its value. The objective is to ensure both the potential growth of Bitcoin and the sustainable development of the city. Bhutan emphasized that Bitcoin's strength lies in its ability to accumulate value over time.

According to estimates from Bitbo, Bhutan ranks fifth globally in Bitcoin reserves, primarily due to mining efforts, holding around 11,286 Bitcoins valued at over $986 million.

Government, Technology, Bitcoin Mining, Bhutan Concept illustrations of GMC portray it as a vibrant urban environment. Source: GMC gallery

Bitcoin as a Development Strategy for Bhutan

The initiative to use Bitcoin for developing the Gelephu Mindfulness City forms part of Bhutan's broader Bitcoin Development Pledge. This pledge aims to enhance the nation’s long-term economic stability via its Bitcoin holdings and mining operations.

King Jigme Khesar Namgyel Wangchuck expressed his commitment to ensure that all of Bhutan's population of over 796,682 will benefit from the GMC. He stated, “We are therefore developing a new land policy that protects landowners, prevents widening disparities, and guarantees shared national prosperity.”

A comprehensive master plan and legal framework for the GMC have already been established, including the appointment of a board of directors and a governor. Preparatory construction work has commenced to ready the site for development.

The special administrative region will support crypto-based transactions among merchants and tourism services, in addition to launching TER, a sovereign-backed digital token associated with physical gold. The GMC is envisioned as an economic corridor linking South Asia to Southeast Asia, providing it with executive autonomy and legal independence, as outlined by King Khesar. The city’s construction will unfold over two decades.

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