Bhutan has announced a large-scale crypto initiative that could become a turning point for the kingdom’s economy. The authorities are ready to transfer up to 10,000 BTC—almost one billion dollars equivalent—to a special fund as part of the Bitcoin Development Pledge program.
These funds will serve as the financial foundation for building the Gelephu Mindfulness City. An economic hub focused on innovation, sustainable infrastructure, and digital development is planned on the country’s southern border.
In the near future, government agencies will define a framework for managing the allocated assets. Several mechanisms for using bitcoin are being considered, including:
• using BTC as collateral,
• low-risk income-generating instruments,
• long-term storage strategies.
The main goal is to preserve capital value and ensure long-term growth, reflecting Bhutan’s bet on strengthening the first cryptocurrency.
In an address to the nation, King Jigme Khesar Namgyel Wangchuck stated that he views the future city as a corporate structure, and its residents as co-owners of a shared project:
“We are allocating up to 10,000 BTC, around $1 billion, for the future of the people, the youth, and the country.”
GMC will receive the status of a special economic zone with transparent regulation. The plan is to attract global fintech companies, crypto projects, and institutional investors.
It is worth noting that Bhutan has been mining cryptocurrency for several years using clean hydropower, efficiently monetizing excess energy without harming the environment.
The kingdom ranks among the world’s top ten holders of digital gold: its reserve contains 5,984 BTC, valued at more than $517 million.
Alongside mining and investment, the country is developing blockchain infrastructure. A digital identity systеm covering around 800,000 citizens has already been implemented, and the TER token backed by physical gold reserves has been launched.
Earlier, representatives of GMC signed a memorandum with the market maker Cumberland DRW to develop the kingdom’s digital financial infrastructure and crypto ecosystem.