Bhutan’s Gelephu Mindfulness City, also known as the World the first city of consciousnesswants to add Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB) to its strategic reserves, according to a statement released on December 8.
GMC is positioning itself as a hub for digital assets and blockchain technology.
The motive behind the integration is to improve the economic resilience of the region as well as build on the existing Bitcoin mining activity in Bhutan. As noted in the press release, city officials are targeting digital assets with large market caps and deep liquidity to ensure they can be traded with minimal price impact.
GMC also intends to focus on assets built on well-established, secure, and transparent blockchains that enable efficient tracking of on-chain transactions.
Crypto reserve funds
The announcement comes after the Law Enforcement Act of 2024, which established a legal and regulatory framework for businesses offering financial services involving digital assets, was passed last month.
The new law, along with the inclusion of digital assets in strategic reserves, aims to create an orderly but technologically advanced ecosystem of digital assets.
The GMC will host a meeting with government officials and industry leaders in March this year. The gathering will focus on two areas, including the implications of recognizing digital assets within strategic reserves and establishing an international advisory panel on digital assets for the city.
Strategically located to serve the South Asian market, Gelephu Mindfulness City seeks to stimulate economic growth and enhance regional connectivity where mindfulness is a fundamental aspect of everyday life.
The city is focusing on innovation and new technologies, especially blockchain technology, as a key part of its economic development.
Bhutan, despite its size, has become a major player in the cryptocurrency sector. The country has been running mining operations since around 2019, with state-owned Druk Holding & Investments (DHI) leading the effort.
Unlike El Salvador which mines Bitcoin using volcanoes, Bhutan is a pioneer in using hydropower to mine Bitcoin. The country’s abundant hydropower resources largely drive its mining operations. This approach allows Bhutan to mine Bitcoin efficiently at a low cost, while maintaining a focus on environmental friendliness.
Reports indicate that Bhutan generates between 55 and 75 BTC per week, representing millions of dollars in revenue. At the end of 2024, Bhutan’s Bitcoin holdings were estimated at approximately $780 million, representing about 35% of its GDP.
Bhutan has also occasionally sold its Bitcoin. The last sale was made last December when an address knowingly owned by the government transferred 406 BTC to KCP Capital, data from Arkham Intelligence shows.
Currently, Bhutan holds 11,688 worth around $1.1 billion, which is among the world’s leading bitcoin holders. Apart from BTC, the country also owns a number of cryptocurrencies such as ETH, APU and MATIC.
The government has signed a deal with Bitdeer, a well-known cryptocurrency miner, to improve its mining capacity. Plans are reportedly underway to expand this capacity from 100 megawatts to 600 megawatts by mid-2025. The move is part of Bhutan’s ongoing strategy to diversify its economy and reduce reliance on tourism and agriculture.
Global trend
Countries around the world are increasingly considering adopting Bitcoin, as well as other large-cap cryptocurrencies, as part of their reserve strategy. Galaxy Research predicts that five nation states will adopt Bitcoin in 2025.
The trend is fueled by a world economic powerhouse like the US, which many expect will soon establish a national bitcoin supply under the incoming Trump administration.
According to Fidelity Digital Asset, the inclusion of Bitcoin in national strategic reserves by nation states, central banks and national treasuries in 2025 will significantly stimulate the cryptocurrency market.
Analysts predict that the successful models from Bhutan and El Salvador will inspire other countries to explore cryptocurrencies for economic benefits. The approach is expected to address risks related to inflation and currency devaluation.
