The Kingdom of Bhutan has made a significant commitment to the future of its economy by pledging 10,000 BTC, valued at approximately $1 billion, towards the development of the Gelephu Mindfulness City (GMC). This initiative reflects the vision of His Majesty King Jigme Khesar Namgyel Wangchuck, who announced the Bitcoin Development Pledge during his recent National Day Address. The project aims to integrate modern digital technologies into Bhutan’s economic framework, ensuring long-term benefits for the nation and its citizens.
Located in the southern region of Bhutan, GMC is envisioned as a hub focused on mindfulness, sustainability, and innovation. The allocation of BTC is part of a broader strategy to create a thriving economic environment that prioritizes both technological advancement and community well-being. Bhutan aims to explore various approaches for utilizing these digital assets, including collateralizing its bitcoin holdings and implementing yield management strategies to maximize the long-term value of its reserves.
In his address, King Jigme Khesar emphasized the importance of responsible asset management, stating that the use of BTC will be guided by principles of prudence and strong governance. This approach aims to ensure transparency and capital preservation while developing the GMC.
Jigdrel Singay, Board Director at GMC, elaborated on the commitment, noting, “Bhutan’s position is that its Bitcoin holdings are intended for the long term, and that commitment is reiterated clearly in the Development Pledge.” He highlighted that the specific strategies for utilizing these assets are still under consideration, emphasizing the need for responsible management.
Gelephu Mindfulness City is not only intended to be a sanctuary for mindfulness practices but will also offer regulatory clarity and financial connectivity, fostering an environment conducive to collaboration. The hub is open to partnerships with both local and international digital asset entities, marking Bhutan’s intention to create a comprehensive ecosystem for digital innovation.
Since becoming one of the early adopters of bitcoin and digital asset infrastructure in 2017, Bhutan has integrated various blockchain technologies into its economic framework. The country has already established strategic reserves of digital assets and enabled cryptocurrency-based payments across multiple services. Furthermore, Bhutan has launched the TER, a sovereign-backed token linked to physical gold, enhancing its digital presence.
King Jigme Khesar reinforced his commitment to the people, stating, “As your King, I must ensure that every Bhutanese is a custodian, stakeholder, and beneficiary of GMC. This commitment is for our people, our youth, and our nation.” This statement underscores the monarch’s dedication to ensuring that the benefits of this economic initiative extend to all citizens.
Bhutan’s pledge of $1 billion in bitcoin signals a bold step in embracing digital currencies to foster economic growth. As the country navigates this innovative path, its approach will likely serve as a model for other nations exploring similar initiatives in integrating digital assets into their economies. The success of the GMC could redefine Bhutan’s economic landscape and set a precedent for sustainable development in the digital age.