Bhutan’s Landmark Initiative
In a landmark initiative, Bhutan has committed to invest approximately $1 billion in the form of 10,000 Bitcoin (BTC) to support the establishment of Gelephu Mindfulness City (GMC), an ambitious economic center located in the southern part of the country. This announcement was made on Wednesday during the National Day Address by His Majesty King Jigme Khesar Namgyel Wangchuck, who emphasized the importance of this investment for the people of Bhutan, particularly for the youth.
“As your King, I must ensure that every Bhutanese is a custodian, stakeholder, and beneficiary of GMC,”
he stated, reinforcing the vision that this venture is for the collective benefit of the nation.
Bitcoin Development Pledge
The Bitcoin Development Pledge by Bhutan is described as one of the most significant sovereign commitments to digital assets aimed at infrastructure enhancement on a global scale. The establishment of GMC aims to spur job creation, bolster economic development, and enhance national resilience by engaging Bhutanese citizens from all regions in its growth. A newly designed land policy will specifically treat Bhutanese landowners as shareholders in this project, as explained by His Majesty:
“Think of GMC as a company and landowners as its shareholders.”
Strategic Management of Bitcoin
Jigdrel Singay, a director on GMC’s board, shared insights with Decrypt, noting that the 10,000 BTC will solely benefit GMC. This strategic reserve not only serves as a safety net but also aims to generate returns to fuel GMC’s development. Singay further mentioned that the Bitcoin will not be sold, emphasizing the intent to hold for long-term growth.
Future strategies regarding the management of these digital assets will be decided in the following months. Various methods are being evaluated, including using BTC as collateral, implementing risk-managed yield strategies, and maintaining a long-term holding approach that prioritizes the preservation of capital. The Kingdom intends to oversee its Bitcoin reserves with utmost diligence and transparency.
Bhutan’s Engagement with Blockchain Technology
This recent pledge builds on Bhutan’s ongoing engagement with blockchain technology, which initially began with hydro-powered Bitcoin mining. Currently, the country has amassed 5,984 BTC, valued at over $522 million, positioning Bhutan as the seventh largest sovereign Bitcoin holder globally, per data from Arkham Intelligence.
In 2023, GMC has already embraced cryptocurrencies as strategic reserves, choosing Bitcoin, Ethereum, and BNB. To promote crypto transactions in tourism, GMC partnered with Binance Pay in May. Furthermore, Bhutan has integrated its National Digital Identity system with Ethereum, marking a pioneering step in utilizing public blockchain for population-scale identity management.
Introduction of Gold-Backed Digital Token
Just last week, GMC introduced a new gold-backed digital token known as TER, utilizing the Solana blockchain, with DK Bank acting as its exclusive distributor. Singay remarked on the launch, stating:
“By issuing gold-backed digital tokens with sovereign branding, we are demonstrating how a crypto-friendly city can welcome responsible innovation while staying rooted in Bhutan’s values of transparency, sustainability, and long-term stewardship.”
