The Bhutanese government announced plans to allocate up to 10,000 bitcoins from its state reserve to create Gelephu Mindfulness City (GMC) — a new economic center in the southern part of the country. This project focuses on sustainable development and attracting investments through digital assets.
Gelephu Mindfulness City Project and Its Goals
Gelephu Mindfulness City is envisioned as an innovative economic hub aimed at promoting sustainable regional development. A key aspect of the initiative is active citizen involvement, reflected in a new land policy designed to protect landowners and prevent social inequality. King Jigme Khesar Namgyel Wangchuck emphasized that every Bhutanese will become a custodian, participant, and beneficiary of the project, likening GMC to a company where landowners act as shareholders.
Funding the Project with Bitcoin
To implement Gelephu Mindfulness City, Bhutan will allocate up to 10,000 bitcoins valued at approximately one billion dollars. Bitcoin is regarded in the country as a strategic reserve asset that is not intended for sale but may be used for treasury operations, collateral, or long-term value storage. The majority of the cryptocurrency is held by the state fund Druk Holding & Investments, which holds around 6,000 bitcoins worth about $590 million.
Bitcoin Reserves and Usage in Bhutan
By mid-2025, Bhutan's bitcoin reserves reached $1.3 billion, accounting for about 40% of the country's gross domestic product. Bhutan actively utilizes surplus hydroelectric power for cryptocurrency mining. In 2023, the government sold part of its bitcoin holdings worth $100 million to double public sector salaries and reduce the outflow of specialists abroad.
Development of Digital Assets and Partnerships
As part of advancing the digital economy, Gelephu Mindfulness City plans to include not only bitcoin but also Ethereum and BNB in its strategic reserves. The project collaborates with Binance Pay to implement crypto payments in the tourism sector, and the national digital citizen identification platform is integrated with the Ethereum blockchain. Additionally, a new digital token, TER, backed by state gold and issued on the Solana platform under the auspices of Bhutan’s digital bank DK Bank regulated by the Royal Mint, was recently launched.
Why This Matters
For miners in Russia, especially those operating between one and a thousand devices, this news highlights bitcoin's growing role as a strategic state-level asset. Bhutan sets an example of how cryptocurrency can form the foundation for economic development and social programs, potentially stimulating interest in mining and digital asset investments.
Moreover, Bhutan’s use of surplus hydroelectric power for mining underscores the importance of energy-efficient solutions, which is relevant for Russian miners seeking optimal electricity sources.
What to Do?
- Monitor the development of projects like Gelephu Mindfulness City to understand trends in state-level cryptocurrency adoption.
- Evaluate opportunities to use renewable energy sources for mining, taking into account Bhutan’s experience with hydroelectric power.
- Explore partnership programs and digital asset integrations, such as collaboration with Binance Pay, to expand cryptocurrency use cases.
- Pay attention to government initiatives and regulations in digital assets to timely adapt mining and investment strategies.
