- Bhutan plans to allocate up to 10,000 Bitcoins from its national reserves to fund Gelephu Mindfulness City.
- Bhutan holds approximately 11,286 Bitcoins, making it the fifth-largest national holder worldwide.
- The city will be developed gradually over 20 years with executive autonomy and legal independence.
According to a Cointelegraph report, Bhutan is preparing to use part of its national Bitcoin reserves to finance the development of Gelephu Mindfulness City, a flagship urban project intended to reshape the country’s economic future.
The Himalayan kingdom confirmed it will allocate up to 10,000 Bitcoins from its holdings to support this special administrative zone, launched in 2024.
This move places Bhutan among a small group of governments actively integrating digital assets into long-term development planning, highlighting how Bitcoin mining and treasury management have become part of the country’s broader economic strategy.
Vision for Gelephu Mindfulness City
Gelephu Mindfulness City is located in southern Bhutan near the Indian border and is designed as a new economic hub aimed at reversing youth migration.
The project seeks to create high-value domestic jobs and expand opportunities beyond the country’s traditional sectors.
Official plans outline a city intended to attract companies in finance, tourism, green energy, technology, healthcare, and agriculture.
The special administrative zone covers roughly 1,544 square miles, about 10% of Bhutan’s total land area.
Its regulatory framework is designed to offer greater flexibility—particularly for cryptocurrency and fintech firms—while supporting the expansion of Bhutan’s Bitcoin mining activities.
Officials have described the city as a testing ground for new economic models that balance innovation with sustainability.
Bitcoin financing strategy
Cointelegraph reports the government is considering several approaches to managing the Bitcoin allocation, currently valued at hundreds of millions of dollars.
Options under review include risk-managed yield strategies, treasury-style governance, and long-term holding plans focused on preserving asset value.
Authorities emphasized that development funding will be executed in a steady, sustainable manner, with governance measures aimed at safeguarding, overseeing, and maintaining transparency of the capital.
Bhutan is the fifth-largest national holder of Bitcoin, with the majority of its reserves accumulated through mining operations.
Estimates from industry trackers put the country’s holdings at roughly 11,286 Bitcoins, with a market value in the high hundreds of millions of dollars.
The Gelephu plan represents the most concrete public use yet proposed for these digital reserves.
National Bitcoin policy
The decision to use Bitcoin for Gelephu Mindfulness City is part of Bhutan’s broader Bitcoin Development Pledge, a national policy focused on promoting long-term economic growth through mining and asset stewardship.
King Jigme Khesar Namgyel Wangchuck has said the aim is to ensure the project benefits the entire population, currently numbering more than 796,000 people.
As part of this approach, Bhutan is developing new land policies intended to protect landowners, prevent the widening of inequality, and ensure shared national prosperity.
The city is presented as a collective national enterprise, with landowners regarded as stakeholders in its success.
Because most land is state-owned, citizens from all Dzongkhags are expected to share in the project’s benefits.
Governance and rollout
The master plan and legal framework for Gelephu Mindfulness City have already been introduced, and appointments for the governor and administrative council are in place.
Construction work has begun on land clearance and site preparation.
The region has also implemented cryptocurrency payments for merchants and tourism services and launched TER, a state-backed digital token linked to physical gold.
The city is intended to function as an economic corridor connecting southern and Southeast Asia, with executive autonomy and legal independence.
Development is scheduled in phases over the next 20 years, reflecting Bhutan’s long-term strategy to integrate digital assets, infrastructure, and governance reform.