The Kingdom of Bhutan has officially announced its intention to allocate up to 10,000 BTC, which at current valuations is roughly equivalent to $1 billion, to finance the development of the Gelephu Mindfulness City (GMC) special administrative zone in the south of the country. Sources from Cointelegraph reported this. For the global crypto industry, this announcement has become one of the most unusual examples of a state using Bitcoin not as a speculative asset, but as a strategic tool for long-term development.
The GMC project was launched in 2024 and is designed as a new economic and cultural center of Bhutan. Its key goal is to stop the outflow of youth abroad and create an ecosystem of well-paid jobs within the country. Authorities expect the city to attract business in finance, sustainable tourism, green energy, high technology, healthcare, and agriculture. At the same time, the GMC concept is based not only on the economy but also on a philosophy of mindful development, traditionally close to Bhutanese society.
King Jigme Khesar Namgyel Wangchuck emphasized that using crypto reserves is neither an elitist nor a closed decision and is intended for the benefit of the entire population. According to him, every citizen should be not just an observer but a full participant in the project.
Concept images of the GMC envision it as a sprawling, well-populated city. Source: GMC gallery
He proposed an unusual model of thinking for government programs: to view GMC as a company and the land and resources as shares in a common asset. Since a significant portion of Bhutan’s land is state-owned, the success of the project, according to the monarch, will be shared among residents of all dzongkhags in the country. Thus, the growth of GMC’s value and efficiency should directly or indirectly impact the welfare of the entire population.
GMC Council Director Jigdreil Singay clarified that the 10,000 BTC will be strictly reserved for the project’s needs and are not considered as a source of quick financing through sale. On the contrary, it is about strategic asset management with a horizon of years, possibly decades.
According to him, Bhutan views Bitcoin as a form of delegated reserve, which can simultaneously preserve value and contribute to the city’s economic growth. Authorities plan to determine the specific BTC usage model in the coming months. Options under discussion include using Bitcoin as collateral, cautious yield-generating strategies considering risks, and long-term storage prioritizing capital protection.
Representatives of GMC emphasize that selling Bitcoin is not on the agenda. The reserve management approach will be built on principles of strict oversight, transparency, and financial prudence. The official statement notes that Bitcoin’s strength lies in its ability to grow in value over the long term, and any use must adhere to this philosophy.
Bhutan has long stood out among nations for its unconventional approach to digital assets. According to Arkham Intelligence, the country currently holds 5,984 BTC valued at over $522 million, making it the seventh-largest sovereign Bitcoin holder in the world. Previously, authorities reported that the country’s total crypto reserve exceeds 13,000 BTC. In June 2025, Bhutan entered the top three countries by Bitcoin reserves — around $1.3 billion, equivalent to almost 40% of the country’s GDP.
It is also important that Gelephu Mindfulness City already operates as a crypto-oriented zone. The city has implemented crypto payments for merchants, services, and tourism infrastructure. Tourists can pay for goods and services via Binance Pay with more than 1,000 local vendors. For Bhutan, this is not just an experiment but part of a broader strategy to integrate digital finance into the real economy.
Against the backdrop of global discussions about Bitcoin’s role in state reserves, Bhutan’s example is particularly noteworthy. Instead of focusing on short-term gains or trying to play the market’s volatility, the emphasis here is on long-term thinking, sustainability, and public engagement. In a world where Bitcoin is more often associated with crises and speculation, Bhutan demonstrates an almost old-fashioned approach: using a new tool calmly, consciously, and without rush.
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