Bhutan pledges Bitcoin to build new city
Bhutan announced the investment up to 10,000 Bitcoin towards building a new city called Gelephu Mindfulness City. This pledge equals approximately one billion dollars based on Bitcoin’s current trading price. The country’s king, Jigme Khesar Namgyel Wangchuck, made the announcement during his National Day speech on 17th December 2025. The king said every citizen of Bhutan should benefit from the new city and have ownership in it. He described the commitment as an investment for young people to find good jobs and stay in Bhutan. Currently, many young Bhutanese people leave the country because they cannot find well-paying work at home.
Gelephu Mindfulness City is located in southern Bhutan near the border with India in the southern region. The planned city covers approximately 1,544 square miles, which represents roughly ten percent of Bhutan’s entire land area. The project launched in 2024 specifically to create high-quality local jobs and reverse youth emigration from the kingdom. The city aims to attract businesses in banking, tourism, clean energy, technology, healthcare and farming industries. Bhutan currently owns around 11,286 Bitcoin in government savings, worth over $986 million at recent prices. This makes Bhutan the fifth-largest government Bitcoin owner globally behind countries like the United States and China.
Government will keep Bitcoin whilst using it to fund construction
The small kingdom will use its Bitcoin holdings to fund construction without actually selling the digital currency permanently. Think of it like using your house as security to get a bank loan rather than selling the house. The government may borrow fiat money from banks using the Bitcoin as a guarantee for repayment. Another option involves putting Bitcoin into safe investment accounts that pay interest over time like a savings account. These strategies preserve the Bitcoin’s value whilst still providing money needed for building roads, buildings and infrastructure. Officials stated their priority is protecting Bitcoin’s long-term value whilst ensuring construction proceeds smoothly and safely. The country believes Bitcoin will become more valuable over many years, like gold or valuable property does.
Specific details about exactly how they will use the Bitcoin will be announced in coming months. The government will create rules ensuring proper oversight and transparency so citizens can see how money gets spent. An official asset management strategy will be approved by government ministers in the coming months after detailed planning. Bitcoin’s price changes frequently, meaning these coins could become worth significantly more or less than today’s value. However, the government believes creating good jobs for young people outweighs the risk of price fluctuations. This approach reflects Bhutan’s focus on long-term benefits for society rather than short-term profits from trading.
Bhutan earned Bitcoin with river energy
Bhutan accumulated its Bitcoin reserves by running powerful computers that help operate the Bitcoin network since 2021. The Bhutanese government mined approximately 13,000 Bitcoin using electricity from rivers flowing through the Himalayan mountains. When rivers flow downhill, they spin turbines that generate electricity without creating pollution or burning fossil fuels. Bhutan produces more electricity than its small population can actually use because it has so many rivers. Rather than wasting this excess electricity, the government uses it to mine Bitcoin and create national wealth. This approach converts natural resources that would otherwise provide no benefit into valuable digital assets for citizens.
Beyond Bitcoin, Bhutan created digital identity cards for 800,000 citizens using blockchain. The country moved this identity system to Ethereum blockchain in October 2025. This upgrade allows citizens to digitally sign documents and prove their identity online safely and securely. Bhutan also created a digital token called TER that represents real physical gold stored in bank vaults. These projects position Bhutan as a global leader in government use of digital technology despite being a small country.
