Bhutan is making a bold move by putting Bitcoin at the heart of its future plans. The country has committed up to 10,000 BTC—worth around $1 billion—to help build Gelephu Mindfulness City (GMC), a new special zone in southern Bhutan aimed at boosting jobs and prosperity. This city will operate as a Special Administrative Region (SAR), designed to attract global investment while staying true to Bhutan’s cultural values.

King Jigme Khesar Namgyel Wangchuck announced this during his National Day speech, calling it a long-term investment for Bhutan’s youth and economy. Instead of selling its Bitcoin, Bhutan will use creative financing methods like lending and yield strategies to fund the project while keeping its crypto reserves safe. Officials promise full transparency and will release more details soon.

Bhutan’s ability to back this big Bitcoin investment comes from its unique way of mining crypto. Since 2021, the country has used extra hydroelectric power from Himalayan rivers to mine over 13,000 BTC. This eco-friendly approach turns unused electricity into valuable digital assets with no extra environmental harm. With more than 11,286 BTC still in its reserves—worth about $1.28 billion—Bhutan is now one of the top five government holders of Bitcoin worldwide. In fact, this strategy contributes to over 25% of the country’s GDP, making it a key part of Bhutan’s economy.

To support this vision, Bhutan created Green Digital Ltd, a company focused on expanding blockchain infrastructure. Green Digital has partnered with firms like Cumberland DRW to develop tools for digital asset trading, scale sustainable Bitcoin mining, build AI computing centers, and explore a national stablecoin. These steps are designed to build a strong digital economy around Bitcoin and blockchain technology.

Bhutan is also modernizing its digital systems. In October, it moved its national digital ID system—which covers 800,000 citizens—from Polygon to Ethereum. This upgrade supports secure digital credentials and signing capabilities. The country is also embracing crypto payments in tourism. Since May, local merchants have accepted over 100 cryptocurrencies through DK Bank and Binance Pay. On top of that, Bhutan recently launched TER, a gold-backed digital token.

Gelephu Mindfulness City aims to become an economic and innovation hub while spreading benefits across the population. Most of the land is still state-owned, so the government plans to share profits fairly among citizens. The King emphasized that every Bhutanese should have a stake in this project.

As of now, Bitcoin is trading around $87,274, with exchange reserves hitting record lows. Global interest in crypto is rising fast—over $87 billion has flowed into crypto exchange-traded products (ETPs) since January 2024. Analysts from Bitwise and Grayscale expect even higher Bitcoin prices by 2026 as adoption continues to grow worldwide.

Key takeaways:
– Bhutan is using up to 10,000 BTC to fund Gelephu Mindfulness City.
– The country mines Bitcoin using eco-friendly hydropower.
– Bhutan holds over 11,000 BTC, one of the largest government reserves.
– It’s building out blockchain infrastructure with global partners.
– Digital ID has moved to Ethereum; tourism now accepts crypto payments.
– TER, a gold-backed token, has been launched.
– Bitcoin adoption continues to grow globally, with strong investment inflows in 2024.