The Kingdom of Bhutan has taken a groundbreaking step in the sovereign use of bitcoin. The Himalayan kingdom has announced the allocation of up to 10,000 BTC, approximately $860 million at current rates, to support the development of Gelephu Mindfulness City, a new economic hub located in the southern part of the country. This decision transforms bitcoin into a strategic tool of public policy, far from just being a speculative reserve.
Gelephu Mindfulness City, Showcase of Bhutan Onchain
Gelephu Mindfulness City is not a conventional urban project. It is a special administrative zone designed as a next-generation economic hub that seamlessly integrates digital assets into its financial management. The project aligns with Bhutan’s ambition to diversify its economy, attract international capital, and offer a development model that aligns with its values of sustainability and well-being.
Bitcoin is considered a strategic reserve for investment and financial stability within this framework, a stark contrast to many states still reluctant to integrate crypto into their macroeconomic toolkit.
A Pioneer in Sovereign Mining Powered by Hydroelectricity
This announcement is not a one-time move. Bhutan stands out as a pioneer among states that have adopted bitcoin mining at a sovereign scale. For years, the country has been converting its excess hydroelectric power into BTC, leveraging clean and abundant energy without increasing its carbon footprint.
Authorities have confirmed that this strategy will continue, aiming to utilize surplus energy while supporting national reserves in digital assets. A pragmatic approach often cited as a counterexample to environmental criticisms directed at bitcoin.
A Broader and Coherent Digital Strategy
The Bitcoin Development Pledge is part of a much larger program. Bhutan has been developing a national digital identity based on blockchain technology, enabling crypto payments for tourism and merchants, and has recently launched TER, a sovereign token backed by gold.
This comprehensive approach outlines a coherent vision: using blockchain technologies to strengthen economic sovereignty, modernize administration, and create opportunities for younger generations. In a time where many countries are still debating the role of bitcoin, Bhutan is advancing methodically.
With this allocation of 10,000 BTC, the kingdom solidifies bitcoin into a long-term national strategy, blending digital finance, sustainable development, and governance. A unique positioning that could inspire far beyond the Himalayas.
