Bhutan Embraces Bitcoin: A Unique Journey

Bhutan has committed to acquiring up to 10,000 BTC as part of its Bitcoin Development Strategy, utilizing hydro mining and a long-term holding plan to support the Gelephu Mindfulness City and promote growth focused on youth.

Key Takeaways

Bhutan has pledged to acquire up to 10,000 BTC to support its Bitcoin Development Strategy.
The initiative is focused on the Gelephu Mindfulness City, which aims to foster innovation and sustainability.
King Jigme Khesar Namgyel Wangchuck underscored the importance of citizens benefitting from Bitcoin’s growth.
The development strategy relies on hydroelectric power and encourages international collaboration.
Bhutan is also advancing a national digital identity system and offering cryptocurrency payment options.

Bhutan pledges 10,000 BTC for Gelephu Mindfulness City

The Kingdom of Bhutan recently launched a national Bitcoin Development Pledge, presenting a strategic plan aimed at benefiting its citizens through cryptocurrency value growth, job creation, and bolstering national resilience. This initiative is centered on the Gelephu Mindfulness City (GMC), an economic hub in southern Bhutan dedicated to mindfulness, sustainability, and innovation. The pledge emphasizes leveraging hydroelectric power for Bitcoin mining, enhancing social and economic conditions for citizens, and inviting partnerships for mutual growth.

Bhutan’s Commitment to Cryptocurrency

The Kingdom of Bhutan has made a significant announcement regarding its national Bitcoin Development Pledge, outlining a carefully crafted three-step strategy that will unfold over the coming decades. This initiative is aimed at ensuring that citizens reap the benefits of cryptocurrency value appreciation alongside economic development through job creation and enhanced national resilience.

The foundation of this initiative is the Gelephu Mindfulness City (GMC), a Special Administrative Region focused on creating an economic hub in southern Bhutan that promotes mindfulness, sustainability, and innovation. During the announcement, King Jigme Khesar Namgyel Wangchuck emphasized the importance of ensuring that every Bhutanese citizen is a stakeholder and beneficiary of this plan, stating, “As your King, I must ensure that every Bhutanese is a custodian, stakeholder, and beneficiary of GMC.”

The King outlined a new land policy designed to protect landowners and prevent widening disparities, thereby fostering shared prosperity. He likened GMC to a company where the landowners act as shareholders, considering that much of the land in Bhutan is state-owned.

To support this ambitious Bitcoin Development Pledge, the government has committed to acquiring more than 10,000 Bitcoin for its sovereign national reserves. “To support this policy, I am announcing today the allocation of up to 10,000 Bitcoin. This commitment is for our people, our youth, and our nation,” declared King Jigme Khesar Namgyel Wangchuck.

Three Pillars of the Initiative

The pledge is grounded in three key pillars. Firstly, Bhutan aims to utilize its abundant hydroelectric power to mine Bitcoin, transforming clean energy into national wealth. Secondly, the Bitcoin mined or acquired will be strategically deployed to uplift the economic and social welfare of its citizens. Lastly, the initiative actively seeks both domestic and international partners to collaborate on building the Bitcoin Development Strategy through trust and long-term commitments.

The GMC is currently exploring strategies for sustainable growth, with decisions anticipated in the upcoming months. Considerations include leveraging the Kingdom’s Bitcoin holdings, implementing risk-managed yield and treasury strategies, and adopting long-term holding methods to safeguard digital asset value.

Governance principles will guide this strategy, focusing on capital preservation, appropriate oversight, and transparency. The aim is to prioritize long-term Bitcoin value to deliver significant economic and social benefits, especially to the younger population of Bhutan.

Youth Empowerment and Economic Growth

Bhutan plans to direct proceeds from Bitcoin mining to create job opportunities for youth, develop skills in technology, finance, and green industries, and strengthen the nation's long-term financial resilience.

The initiative also commits to collaborating with organizations and individuals that align with its objectives, reinforcing ties with international fintech and digital asset partners for the development of Gelephu Mindfulness City. As a Special Administrative Region, GMC is designed to provide regulatory clarity, modern financial connectivity, and an ecosystem conducive to collaboration and growth.

Bhutan has become the first sovereign nation to implement a Bitcoin mining strategy that leverages renewable energy, thereby accumulating Bitcoin holdings in its national reserves. Recently, the country also introduced a sovereign-backed digital token linked to physical gold, allowing investors to purchase and own physical gold. Bhutan has announced the launch of a national digital identity system based on public blockchain technology, allowing nearly 800,000 citizens to verify their identities and access public services. Alongside this, GMC has initiated a program enabling merchants to accept cryptocurrency payments via Binance Pay.

In summary, Bhutan's innovative approach to Bitcoin and digital assets marks a unique chapter in the cryptocurrency landscape, reflecting a commitment to sustainable development and the well-being of its citizens.