Bhutan and Bitcoin: a love story

Bhutan pledges up to 10,000 BTC to its Bitcoin Development Strategy, using hydro mining and long-term holding to fund Gelephu Mindfulness City and youth-focused growth.​

The Kingdom of Bhutan announced a national Bitcoin Development Pledge on Wednesday, outlining a three-step strategy designed to operate over the coming decades, according to an official statement.

The pledge aims to provide citizens with benefits from cryptocurrency value growth and economic development through job creation and national resilience, the statement said. The initiative originates from the Gelephu Mindfulness City (GMC), a Special Administrative Region developing an economic hub in southern Bhutan focused on mindfulness, sustainability, and innovation.

King Jigme Khesar Namgyel Wangchuck addressed the initiative during the unveiling, reflecting on the country’s progress in Bitcoin (BTC) and advanced technologies. “As your King, I must ensure that every Bhutanese is a custodian, stakeholder, and beneficiary of GMC,” the King stated, according to the announcement. “We are therefore developing a new land policy that protects landowners, prevents widening disparities, and ensures shared national prosperity.”

The King described GMC as comparable to a company with landowners as shareholders, noting that most land is state-owned, allowing Bhutanese citizens from all regions to share in its success.

The government committed to acquiring more than 10,000 Bitcoin for its sovereign national reserves to support the Bitcoin Development Pledge. “To support this policy, I am announcing today the allocation of up to 10,000 Bitcoin. This commitment is for our people, our youth, and our nation,” King Jigme Khesar Namgyel Wangchuck said.

The pledge rests on three pillars, according to the statement. First, the country will continue leveraging its hydroelectric power reserves to mine Bitcoin, converting clean energy into national value. Second, Bitcoin mined or acquired will be used to improve economic and social conditions for citizens. Third, the initiative welcomes domestic and foreign partners to participate in building the Bitcoin Development Strategy through trust and long-term commitment.

GMC is evaluating approaches for long-term growth, with decisions expected in the coming months, the statement said. Options under consideration include collateralizing the Kingdom’s Bitcoin holdings, risk-managed yield and treasury strategies, and long-term holding approaches designed to preserve digital asset value.

The strategy will be guided by governance principles aimed at ensuring capital preservation, appropriate oversight, and transparency, according to the announcement. The approach focuses on long-term Bitcoin value over the coming decades to deliver economic and social outcomes, particularly for the country’s young population.

Bhutan plans to use Bitcoin mining proceeds to create employment for youth, cultivate skills in technology, finance, and clean industries, and strengthen the country’s long-term financial resilience, the statement said.

Bhutan and Bitcoin: a love story

The pledge also commits to working with organizations and individuals aligned with its goals, reinforcing engagement with international fintech and digital asset partners to participate in Gelephu Mindfulness City development. As a Special Administrative Region, GMC is being developed to provide regulatory clarity, modern financial connectivity, and an environment for collaboration and growth, according to the announcement.

Bhutan became the first sovereign nation to adopt a Bitcoin mining strategy, utilizing renewable energy to mine Bitcoin and accumulating holdings in its national reserves through clean energy operations, according to previous reports.

Last week, the country launched a sovereign-backed digital token linked to physical gold, allowing investors to purchase and own physical gold. Bhutan also announced a national digital identity system built on public blockchain technology, enabling nearly 800,000 citizens to verify their identities and access public services. Through GMC, the country launched an initiative allowing merchants to accept cryptocurrency payments through Binance Pay, according to separate announcements.