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

Bhutan has announced plans to allocate 10,000 Bitcoin from its national reserves to support the development of Gelephu Mindfulness City (GMC).

Located in southern Bhutan near the town of Gelephu, the project was conceived as a response to the steady outflow of young Bhutanese seeking employment abroad. By creating high-value jobs domestically, GMC aims to retain talent and build a more resilient local economy.

The special administrative region is structured to support a wide range of industries, including finance, technology, tourism, green energy, healthcare, and agriculture.

According to figures published on the project’s official website, the development will span approximately 2,600 square kilometers. This represents roughly 5% of Bhutan’s total land area, underscoring the project’s magnitude.

Consequently, it is set to become one of the most ambitious undertakings in the nation’s history.

Strategy Behind the Bitcoin Allocation

The government estimates the value of the 10,000 Bitcoin allocation at roughly $875 million. However, rather than liquidating the assets outright, authorities are considering a set of controlled financial approaches, including treasury management tools, low-risk yield strategies, and long-term holding plans.

Officials have emphasized that preserving the value of the Bitcoin reserve remains the top priority.

In an official statement, the government highlighted Bitcoin’s long-term growth potential and stressed that transparency, oversight, and prudent governance will guide all related decisions.

Bhutan’s Position Among Global Bitcoin Holders

Bhutan currently ranks fifth among nation-states in Bitcoin holdings, with most of its reserves derived from state-backed mining operations.

Specifically, data from the crypto analytics platform Bitbo estimates the country’s total holdings at approximately 11,286 Bitcoin. Based on current market prices, these holdings are valued at over $986 million.

This reserve forms the foundation of Bhutan’s broader digital asset strategy and underpins its ability to deploy Bitcoin as a strategic economic tool.

Part of a Broader National Bitcoin Strategy

The decision to use Bitcoin in support of GMC aligns with Bhutan’s broader Bitcoin Development Pledge. This national strategy seeks to strengthen long-term economic resilience by integrating digital assets into state planning and public finance.

Policymakers consistently describe Bitcoin as a strategic reserve rather than a short-term financial instrument.

King Jigme Khesar Namgyel Wangchuck has framed the project as a means of achieving shared prosperity. He has stated that the development should benefit Bhutan’s entire population of more than 796,000 people.

To support this vision, the King has outlined plans for a new land policy. The policy aims to protect landowners and prevent widening inequality. In this context, he has compared GMC to a company, with landowners acting as shareholders who share in its success.

Governance Structure and Project Progress

Key institutional foundations are already in place. For instance, authorities have released a master plan and legal framework, appointed a board of directors, and named a governor to oversee development.

Meanwhile, physical work has begun, with construction teams clearing and preparing site areas.

Additionally, crypto integration is already visible within the region. Merchants and tourism services in GMC accept crypto payments. Moreover, the city has also introduced TER, a sovereign digital token backed by physical gold.

Looking ahead, GMC is envisioned as an economic corridor linking South Asia with Southeast Asia. The city is expected to operate with executive autonomy and legal independence.

Development will take place in phases. The full build-out is planned over the next 20 years, aligning with Bhutan’s focus on stability, patience, and sustainable growth.