Bhutan is taking an unconventional yet carefully structured approach to national development by channeling a significant share of its Bitcoin reserves into a flagship infrastructure project. The Himalayan kingdom has confirmed plans to allocate 10,000 Bitcoin toward the development of Gelephu Mindfulness City (GMC), a special administrative region intended to redefine Bhutan’s long-term economic trajectory.
With estimated holdings of 11,286 BTC currently valued at more than $986 million, Bhutan stands as the world’s fifth-largest known sovereign Bitcoin holder. The majority of these holdings were accumulated through state-backed Bitcoin mining operations powered by renewable energy, aligning the strategy with the country’s sustainability goals.
What Is Gelephu Mindfulness City?
Launched in 2024, Gelephu Mindfulness City is designed to serve as Bhutan’s next major economic growth hub. Situated in southern Bhutan near the Indian border, the city spans approximately 1,544 square miles, accounting for nearly 10% of the nation’s total land area.
The project directly targets Bhutan’s rising youth migration by creating high-value employment opportunities domestically. GMC is planned as a multi-sector zone, drawing investment in finance, tourism, green energy, healthcare, agriculture, and technology. A flexible regulatory framework is also being developed to attract crypto, fintech, and digital asset firms seeking regulatory clarity and innovation-friendly policies.
How Bhutan Plans to Deploy Its Bitcoin Reserves
Bhutanese authorities have emphasized that Bitcoin deployment will prioritize capital preservation rather than aggressive liquidation. Instead of selling large portions of its holdings, the government is exploring risk-managed treasury strategies, yield-generating mechanisms, and long-term custody models to support infrastructure funding while maintaining balance-sheet strength.
Officials have reiterated that Bitcoin’s role within the project is to generate compounded value over time. Governance safeguards, transparency standards, and institutional oversight are expected to guide all treasury decisions, ensuring that development financing does not compromise fiscal stability.
Bitcoin at the Center of Bhutan’s Economic Strategy
GMC forms a core pillar of Bhutan’s broader National Bitcoin Development Pledge, which integrates digital assets, sovereign mining operations, and renewable energy into national economic planning. The city already supports crypto-based payments across tourism services and local merchants and has introduced TER, a sovereign-backed digital token linked to physical gold reserves.
Preparatory work is well underway. Bhutan has finalized the legal framework for the city, approved a master development plan, appointed a governing board, and installed a dedicated governor to oversee implementation.
A Long-Term Vision for Shared Prosperity
King Jigme Khesar Namgyel Wangchuck has positioned Gelephu Mindfulness City as a collective national endeavor rather than a top-down development project. He has compared the city’s structure to a corporate model in which landowners function as shareholders, ensuring that economic returns are distributed broadly across Bhutan’s population of approximately 796,000 people.
Planned as a 20-year development initiative, GMC is envisioned as an economic corridor linking South Asia and Southeast Asia. By combining sustainability, digital finance, and a sovereign Bitcoin strategy, Bhutan is aiming to carve out a distinctive role in the evolving global economic landscape.
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FAQs
Gelephu Mindfulness City is a 1,544 sq. mile economic hub blending digital finance, tourism, green energy, and tech to boost Bhutan’s growth.
The goal is long-term economic stability, youth employment, and innovation by integrating digital assets with sustainable urban development.
GMC targets finance, tourism, healthcare, green energy, agriculture, and technology with flexible rules for crypto and fintech firms.
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