Bhutan Pledges 10K Bitcoin to Fund Gelephu Mindfulness City Development

Highlights:

• Bhutan pledges 10K Bitcoin to support the Gelephu Mindfulness City.
• The project aims to create jobs and attract foreign investment.
• Bitcoin will be managed with strong oversight for long-term growth.

The Kingdom of Bhutan has committed 10,000 Bitcoin, approximately $1 billion, to fund the development of Gelephu Mindfulness City (GMC). The city is located in the southern part of Bhutan and is expected to become a new economic hub. This project is part of the long-term plan that Bhutan has adopted to improve its economy with cryptocurrency.

Introduced in 2024, GMC will have an estimated land area of approximately 1,544 square miles. The objective of the city is to generate local employment and prevent the migration of youth. King Jigme Khesar Namgyel Wangchuk expressed his vision on GMC.

He said:

The city will further serve as a special economic zone, which will provide business-friendly regulations. This will attract business, particularly in the cryptocurrency and financial technology sectors. Moreover, GMC is working to attract additional foreign investment in the country whilst utilizing the renewable energy endowments of Bhutan.

How Bhutan Plans to Use Its Bitcoin Reserves

The ten thousand Bitcoins will not be liquidated as decided by the government. Instead, Bhutan intends to invest the reserves in long-term growth. The country will also embrace risk-managed yield strategies to protect the value of its Bitcoin holdings.

The government of Bhutan remarked, “The use of Bitcoin will be informed by effective governance and wisdom.” This cautious measure will see to it that the money will be utilized to develop the city sustainably. The management of the Bitcoin reserves in Bhutan will be transparent and regulated. The government has further promised to maintain the long-term value of the cryptocurrency and invest in the development of the city.

Bitcoin and Bhutan’s Economic Strategy

The 10,000 Bitcoin pledge is part of the larger Bitcoin Development Pledge of Bhutan. The project aims to make the future of Bhutan secure with the integration of digital assets into its economy. Bhutan has been harnessing its rich hydropower resources to mine Bitcoin, which contributes to its crypto ambitions. Additionally, the nation has gained prominence over its clean-energy Bitcoin mining activities.

Bhutan is one of the pioneer countries in adopting blockchain technology in its national identity strategy. Beyond Bitcoin, GMC has also integrated Ethereum (ETH) and Binance Coin (BNB) among its strategic reserves. The nation has already collaborated with Binance Pay, which allows making crypto payments across the region.

GMC is looking into other digital assets in addition to Bitcoin. The city has unveiled a gold-backed digital currency called TER. The token is issued by DK Bank to demonstrate Bhutan’s commitment to pursuing a digital future in the financial sphere.

The Bitcoin reserves in Bhutan are substantial. The kingdom currently owns a total of 5,984 BTC, worth more than $522 million. This places Bhutan as the seventh-largest independent sovereign holder of Bitcoin in the world based on Arkham Intelligence data.