Bhutan Plans to Fund Gelephu Mindfulness City With National Bitcoin Reserves

Bhutan is preparing to deploy a portion of its national Bitcoin reserves to finance the Gelephu Mindfulness City, a flagship urban development intended to reshape the kingdom’s economic future. The government has confirmed plans to use up to 10,000 Bitcoin for the special administrative zone launched in 2024.

This move places Bhutan among a small group of nations that are actively integrating digital assets into long-term development planning, and highlights how Bitcoin mining and treasury management are embedded in the country’s broader economic strategy.

Vision for Gelephu Mindfulness City

Gelephu Mindfulness City, located in southern Bhutan near the Indian border, is being positioned as a new economic hub aimed at reversing youth migration. The project seeks to create high-value domestic jobs and broaden opportunities beyond the country’s traditional sectors.

Official plans indicate the city will attract companies in finance, tourism, green energy, technology, healthcare, and agriculture. The special administrative zone will cover roughly 1,544 square miles—about 10% of Bhutan’s land area—and its regulatory framework is designed to offer greater flexibility, particularly for crypto and fintech firms, while supporting expansion of the country’s Bitcoin mining activities.

Officials describe Gelephu as a testing ground for a new economic model that balances innovation with sustainability.

Bitcoin funding strategy

Authorities say several approaches are under consideration to manage the allocation of Bitcoin, valued at roughly $875 million. Proposed options include risk-managed yield strategies, treasury-style asset management, and long-term ownership plans intended to preserve and grow the asset base.

The government emphasizes that funding for development will proceed in a stable, sustainable manner under governance arrangements focused on capital preservation, oversight, and transparency.

Bhutan ranks as the world’s fifth-largest national Bitcoin holder, with most of its stockpile accumulated through domestic mining operations. Estimates put the country’s holdings at about 11,286 Bitcoin, with a market value approaching $986 million. The Gelephu initiative represents the most concrete use of these digital assets for public development to date.

National Bitcoin policy

The decision to use Bitcoin for Gelephu is part of Bhutan’s broader Bitcoin Development Pledge, a national policy aimed at supporting long-term economic growth through mining and asset stewardship. King Jigme Khesar Namgyel Wangchuck has stated that the goal is to ensure benefits reach the nation’s entire population of more than 796,000 people.

As part of this approach, Bhutan is developing new land policies intended to protect landowners, prevent widening inequality, and promote shared national prosperity. The city has been framed as a collective national enterprise in which landowners become stakeholders. Since much of the land involved is state-owned, residents from all Dzongkhags are expected to share in the project’s gains.

Governance and rollout

The master plan and legal framework for Gelephu Mindfulness City have been finalized, and a governor and board of directors have been appointed. Construction work has begun to clear and prepare the site.

The zone has introduced crypto-based payments for merchants and tourism services and has launched TER, a state-backed digital token linked to physical gold. Gelephu is envisioned as an economic corridor connecting South and Southeast Asia, with executive autonomy and legal independence.

Development is scheduled to be phased over the next 20 years, reflecting Bhutan’s long-term strategy to integrate digital assets, infrastructure investment, and governance reforms to drive sustainable national development.