In a groundbreaking announcement, Bhutan has pledged up to 10,000 Bitcoin (BTC), valued at approximately $1 billion, to support the development of Gelephu Mindfulness City (GMC), an ambitious economic hub in the southern region of the country. King Jigme Khesar Namgyel Wangchuck disclosed this commitment during his National Day Address, emphasizing that the initiative is designed to ensure that every Bhutanese citizen becomes a custodian, stakeholder, and beneficiary of GMC.
This significant move represents one of the largest sovereign commitments to using digital assets for infrastructure development on a global scale. King Wangchuck stressed that the dedication is for the benefit of the Bhutanese people, particularly the youth, framing the GMC as a collective project where landowners are akin to shareholders. He explained, “Think of GMC as a company and landowners as its shareholders,” highlighting that much of the land in Bhutan is state-owned, allowing citizens from all districts, or Dzongkhags, to partake in the project’s prosperity.
Jigdrel Singay, a board director at GMC, provided additional insights, confirming that the 10,000 BTC will be used exclusively for the GMC’s benefit. This strategy represents both a reserve allocation and a proactive effort to generate yields to support the project’s growth. Importantly, Bhutan does not plan to liquidate its Bitcoin holdings. Instead, officials are considering methods such as collateralization, risk-managed yield strategies, and long-term holding to preserve capital and promote value appreciation.
The management of the Bitcoin reserves is set to prioritize long-term value retention, accompanied by strong oversight and transparent governance. Bhutan currently holds 5,984 BTC, which translates to over $522 million, placing the kingdom seventh globally among sovereign Bitcoin holders, according to Arkham Intelligence data. This initiative is part of Bhutan’s broader strategy to leverage blockchain technology, which has included Bitcoin mining powered by the country’s abundant hydroelectric resources.
This year, GMC has also recognized Bitcoin, Ethereum, and BNB as strategic reserves, partnered with Binance Pay to facilitate crypto payments in the tourism sector, and integrated its National Digital Identity platform with Ethereum, making Bhutan the pioneer in embedding population-scale identity systems on a public blockchain.
In an additional move to promote its crypto-friendly environment, GMC recently launched a gold-backed digital token, known as TER, on the Solana blockchain, with DK Bank acting as the exclusive distributor. Singay stated, “By issuing gold-backed digital tokens with sovereign branding, we are demonstrating how a crypto-friendly city can welcome responsible innovation while staying rooted in Bhutan’s values of transparency, sustainability, and long-term stewardship.”
As Bhutan embarks on this bold journey into the digital asset space, it aims not just for economic development but also for inclusive participation from its citizens, highlighting a transformative vision for the nation’s future.
