The Kingdom of Bhutan has announced plans to allocate 10,000 Bitcoin from its reserves to finance the construction of the Gelephu Mindfulness City (GMC).

Located in Southern Bhutan, the GMC was established to create an economic hub aimed at preventing the migration of young residents by providing valuable local job opportunities.

Designed to attract ventures from multiple sectors—such as finance, tourism, green energy, technology, healthcare, and agriculture—the city will also support cryptocurrency and fintech businesses, enhancing Bhutan’s Bitcoin mining initiatives. Covering approximately 10% of the country (around 1,544 square miles), as reported on its website.

Concept images of the GMC envision it as a sprawling, well-populated city.
Source: GMC gallery

Funding Plans for GMC

A variety of strategies are under consideration to invest the Bitcoin, including risk-managed yield techniques and long-term holding approaches to protect the value of the assets, as stated by officials on Wednesday. The focus will be on maintaining Bitcoin’s potential while ensuring sustainable development. They emphasized:

“Bitcoin’s enduring strength lies in its ability to compound value over time.”

Bhutan, which has the fifth-largest Bitcoin holdings among nations, is estimated to possess around 11,286 Bitcoins worth over $986 million, primarily accrued through mining activities.

The US is leading the pack among countries holding Bitcoin.
Source: Bitbo

National Bitcoin Development Strategy

This initiative is part of Bhutan’s wider Bitcoin Development Pledge, aimed at fostering economic growth using its Bitcoin reserves and mining operations.

King Jigme Khesar Namgyel Wangchuck stated that the objective is to make sure that the entire population benefits from the GMC. He commented:

“Think of GMC as a company and landowners as its shareholders. Since most land is state-owned, Bhutanese from all Dzongkhags will share in its success.”

A comprehensive plan and legal structure for the GMC have already been initiated, along with the formation of a board of directors and a governor. Construction work has started to prepare the site areas. The special administrative region will facilitate crypto-based transactions across businesses and tourism services, alongside the launch of TER, a sovereign-backed digital token linked to gold.

This project is envisioned as an economic link between South Asia and Southeast Asia, with autonomy and legal independence, as highlighted by King Khesar. The construction is set to unfold over the next two decades.