Bhutan recently announced its ambitious plan to allocate up to 10,000 bitcoins, valued at approximately $860 million, for the long-term development of the southern Gelephu Mindfulness City. This significant commitment positions Bitcoin 
$91,967 not merely as a speculative tool but as a strategic national asset. The Bhutanese government aims to prioritize capital preservation, transparency, and a long-term custodial approach during its implementation.
The Goals Behind Bhutan’s Bitcoin Commitment
The primary aim of Bhutan’s Bitcoin commitment is to strengthen the financial infrastructure of Gelephu Mindfulness City while supporting the project’s sustainable development vision. Officials emphasized that Bitcoin reserves would not be deployed as a direct spending tool but maintained as a value-retaining financial instrument.
Authorities are considering options like collateralizing models, public treasury strategies, or long-term holding to utilize the BTC reserves. This strategic approach seeks to ensure the stability of national reserves by steering clear of short-term market volatility.
Bhutan’s journey to this decision has been influenced significantly by its ongoing Bitcoin mining policy. The country utilizes its surplus hydropower production for cryptocurrency mining, allowing Bitcoin production without any adverse environmental impact. This method is expected to continue in the future.
The Role of Gelephu Mindfulness City
Located in southern Bhutan, Gelephu Mindfulness City is emerging as a unique economic hub with special administrative status. The integration of cryptocurrencies within its financial reserve model seeks to attract foreign investments and enhance economic diversity.
This initiative is considered a crucial component of Bhutan’s broader Blockchain strategy. The government sees Blockchain-based national digital identity systems and crypto-supported payment solutions in tourism and trade as fundamental elements of the country’s economic transformation.
Complementing these strategies is the recently launched TER, a sovereign collateralized gold token. By integrating digital financial tools with governance, sustainability, and social welfare objectives, Bhutan aims to establish a long-term economic structure that benefits its younger population.
