Key Insights
- Bhutan plans to utilise 10,000 Bitcoins to support infrastructure and long-term growth at GMC.
- GMC will serve as a crypto-friendly zone focused on job innovation and economic stability
- Bitcoin reserves are managed as a capital protection mechanism for long-term value.
Bhutan has proposed a long-term strategy to allocate 10,000 BTC of its national Bitcoin reserves to fund infrastructure and economic development in Gelephu Mindfulness City (GMC). This special administrative zone will be the future growth centre of the kingdom.
GMC is approximately 1,544 square miles and covers around 10% of Bhutan’s total land area. The city is designed to offer regulatory flexibility to crypto and fintech companies, as well as to explore additional aspects of Bitcoin mining in Bhutan, which is currently based on locally generated hydroelectric power.
In a speech on a national Day, King Jigme Khesar Namgyel Wangchuk made the project a national initiative, stating that every Bhutanese must be both a guardian and a consumer of GMC. The city is being positioned as a place to generate employment, minimise youth migration, and enable long-term economic sustainability.
Bitcoin Strategy Tied Directly to City Growth
Bhutan plans to allocate up to 10,000 Bitcoin specifically for GMC’s benefit, according to city officials. Jigdrel Singay, a board director at GMC, said the allocation functions as both a reserve commitment and an active financial tool to support the city’s expansion.
The Bitcoin will not be sold, Singay confirmed. Instead, authorities are evaluating options such as collateralization, risk-managed yield strategies, treasury management, and long-term holding structures to preserve value.
The broader reserve policy focuses more on capital protection and transparent governance as opposed to short-term returns. Officials said final decisions on execution will be made in the coming months as the city evaluates risk controls and operational models.
Digital Assets Anchor Broader Economic Vision
GMC’s development plan targets multiple sectors, including finance, tourism, green energy, healthcare, technology, and agriculture. Officials have likened the city’s structure to a company, with landowners acting as shareholders. As most land is state-owned, the government says citizens across all regions will share in GMC’s economic outcomes.
Bhutan currently holds 5,984 Bitcoin worth more than $522 million, ranking seventh among sovereign Bitcoin holders, according to Bitbo. The country’s engagement with blockchain extends beyond Bitcoin reserves.
In the first half of this year, GMC recognised Bitcoin, Ethereum, and BNB as strategic assets and collaborated with Binance Pay to accept crypto payments for tourism.
Furthermore, the city has also integrated Bhutan’s National Digital Identity system with Ethereum, making the country the first to anchor a population-scale identity framework on a public blockchain. More recently, GMC launched TER, a gold-backed digital token issued on the Solana blockchain, with DK Bank serving as the exclusive distributor.
