Bhutan to Invest 10,000 Bitcoin for the Development of Gelephu Mindfulness City

Bhutan is set to allocate 10,000 Bitcoin from its national reserves to finance the development of Gelephu Mindfulness City (GMC). This initiative aims to create high-value job opportunities in the country and retain talented youth who often seek employment abroad. The project encompasses a significant area and includes a range of industries aimed at building a resilient economy.

Key Takeaways

Bhutan plans to use 10,000 Bitcoin, valued at about $875 million, to fund the Gelephu Mindfulness City.
The project aims to create jobs and reduce youth emigration by fostering local economic growth.
Bhutan ranks fifth globally in Bitcoin holdings, primarily from state-backed mining endeavors.
The initiative is part of a larger national strategy that integrates Bitcoin into state planning.
Construction has already begun, and the city will implement phases over the next 20 years.

Bhutan and Bitcoin

Introduction of GMC

Bhutan has made an exciting announcement regarding its economic strategy. The country intends to allocate 10,000 Bitcoin from its national reserves to fuel the creation of the Gelephu Mindfulness City (GMC). This initiative is located in southern Bhutan, near the town of Gelephu, and addresses the ongoing trend of young Bhutanese leaving the country in search of work. The goal of GMC is to generate high-value employment opportunities within Bhutan, which will help keep talent within its borders and strengthen the local economy.

The GMC project is structured to support various industries, including finance, technology, tourism, green energy, healthcare, and agriculture. According to the project's official website, it will cover an estimated area of around 2,600 square kilometers. This accounts for roughly 5% of Bhutan's entire land area, highlighting the project's significant scale. As such, it represents one of the most ambitious projects in the nation's history.

The Bitcoin Allocation Strategy

The government has projected the value of the 10,000 Bitcoin allocation to be roughly $875 million. However, instead of selling the Bitcoin outright, officials are planning to employ various controlled financial strategies. These may include treasury management tools and low-risk yield strategies, along with a long-term holding approach. Authorities have stressed that maintaining the value of the Bitcoin reserve is their primary focus.

In a public statement, the government pointed to Bitcoin's potential for long-term growth and assured that all decisions regarding its use will be guided by principles of transparency, oversight, and sound governance.

Bhutan's Standing in Global Bitcoin Holdings

Currently, Bhutan ranks fifth among nation-states in terms of Bitcoin holdings, with the majority of its reserves stemming from state-backed mining operations. Statistics from the crypto analytics platform Bitbo indicate that Bhutan holds approximately 11,286 Bitcoin, valued at over $986 million based on current market prices. This reserve is central to Bhutan's wider digital asset strategy and enhances its capability to use Bitcoin as an effective economic tool.

A Part of a Broader Bitcoin Development Strategy

Utilizing Bitcoin to support GMC is consistent with Bhutan's larger Bitcoin Development Pledge, a national initiative aimed at improving long-term economic resilience by incorporating digital assets into state planning and public finance. Policymakers have frequently described Bitcoin as a strategic reserve rather than a short-term financial instrument.

King Jigme Khesar Namgyel Wangchuck has characterized the GMC project as a pathway to shared prosperity, emphasizing that the development is intended to benefit Bhutan's entire population of over 796,000 residents. To further this vision, the King has announced plans for a new land policy designed to protect landowners and curb rising inequality, likening GMC to a company where landowners act as shareholders who partake in the project’s success.

Governance Structure and Project Development

Important institutional foundations are already established for the GMC project. Authorities have released a master plan and legal framework and appointed a board of directors along with a governor to oversee the development. Physical work has commenced, including clearing and preparing site areas for construction.

Moreover, the integration of cryptocurrency is already evident in the region, with merchants and tourism services in GMC accepting crypto payments. The city has even introduced TER, a sovereign digital token backed by physical gold.

Looking to the future, GMC is envisioned as an economic corridor connecting South Asia with Southeast Asia. The city is expected to operate with executive autonomy and legal independence. Development will occur in phases, and the full construction is expected to span the next two decades, reflecting Bhutan’s commitment to stability, patience, and sustainable growth.

Disclaimer: This content is informational and should not be taken as financial advice. The opinions expressed in this article reflect the author's views and do not represent The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses.