Bhutan plans to fund Gelephu Mindfulness City using national Bitcoin reserves

Bhutan is preparing to deploy part of its national Bitcoin reserves to finance the development of the Gelephu Mindfulness City, a flagship urban project designed to reshape the country’s economic future, as per a Cointelegraph report.

The Himalayan kingdom has confirmed that it will tap up to 10,000 Bitcoin from its holdings to support the special administrative region, which was launched in 2024.

The move places Bhutan among a small group of governments actively integrating digital assets into long-term development planning, while also highlighting how Bitcoin mining and treasury management have become embedded in the country’s broader economic strategy.

Gelephu Mindfulness City vision

Gelephu Mindfulness City is located in southern Bhutan near the Indian border and has been positioned 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.

According to official plans, the city is designed to attract companies across finance, tourism, green energy, technology, healthcare, and agriculture.

The special administrative region covers around 1,544 square miles, equivalent to roughly 10% of Bhutan’s total land area.

Its regulatory structure allows greater flexibility, particularly for crypto and fintech firms, while also 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 funding strategy

According to Cointelegraph, the government said on Wednesday that a range of approaches is being considered to manage the Bitcoin allocation, valued at about $875 million.

These include risk-managed yield strategies, treasury-style management, and long-term holding plans intended to protect and preserve the value of the assets.

Authorities have emphasised that development funding will proceed in a stable and sustainable manner, with governance frameworks focused on capital preservation, oversight, and transparency.

Bhutan ranks as the fifth-largest national holder of Bitcoin, with most of its reserves accumulated through mining operations.

Data from Bitbo estimates that the country holds about 11,286 Bitcoin, with a market value exceeding $986 million.

The Gelephu plan represents the most concrete use yet of this digital asset stockpile for public development.

National Bitcoin policy

The decision to use Bitcoin for Gelephu Mindfulness City forms part of Bhutan’s broader Bitcoin Development Pledge, a national policy aimed at supporting long-term economic growth through mining and asset management.

King Jigme Khesar Namgyel Wangchuck has stated that the objective is to ensure that the entire population of more than 796,682 people benefits from the project.

As part of this approach, Bhutan is developing a new land policy intended to protect landowners, prevent widening inequality, and ensure shared national prosperity.

The city has been framed as a collective national enterprise, with landowners treated as stakeholders.

Because most land is state-owned, citizens from all Dzongkhags are expected to share in the project’s success.

Governance and rollout

A masterplan and legal framework for Gelephu Mindfulness City have already been unveiled, alongside the appointment of a governor and a board of directors.

Construction work has begun to clear and prepare the site.

The region has also introduced crypto-based payments for merchants and tourism services and launched TER, a sovereign-backed digital token linked to physical gold.

The city has been envisioned as an economic corridor connecting South Asia and Southeast Asia, with executive autonomy and legal independence.

Development is planned in phases over the next 20 years, reflecting Bhutan’s long-term strategy to integrate digital assets, infrastructure, and governance reform.