The Himalayan kingdom invests its bitcoin reserves in the development of an innovative city.
On December 17, Bhutan announced its intention to allocate up to 10,000 bitcoins—worth approximately one billion dollars—for the development of Gelephu Mindfulness City (GMC), an ambitious economic hub in the southern part of the country.
The announcement came directly from His Majesty King Jigme Khesar Namgyel Wangchuck during the National Day Address:
“As your King, I must ensure that every Bhutanese is a custodian, stakeholder, and beneficiary of GMC. This commitment is for our people, our youth, and our nation.”
Jigdrel Singay, a board member of GMC, explained to Decrypt that the 10,000 bitcoins will be held specifically for the benefit of the city and represent “both a reserve delegation and a proactive effort to generate returns from these BTC for the growth of GMC.”
The kingdom has no intention of selling the bitcoins, preserving the capital for long-term value appreciation. Strategies under consideration include:
- collateralization of the kingdom’s bitcoin holdings;
- yield and treasury strategies managed with careful risk oversight;
- long-term holding approaches to preserve and protect the value of digital assets.
The final decision on operational modalities will be made in the coming months, with a focus on prudent management and transparent governance.
The initiative goes beyond the financial aspect. The GMC project aims to create jobs, stimulate economic development, and strengthen national resilience, allowing Bhutanese citizens from every region to participate in its success through a new land policy that treats them as stakeholders.
“Think of GMC as a company and landowners as its shareholders,” His Majesty said. “Since most land is state-owned, Bhutanese from all Dzongkhags will share in its success.”
The plan to use bitcoin for Gelephu Mindfulness City is part of the broader national Bitcoin Development Pledge, which aims to support Bhutan’s long-term economic development through its bitcoin reserves and mining operations.
