Bhutan says 10,000 bitcoins will be used to build its new administrative city

Bhutan has pledged to invest up to 10,000 bitcoin (approximately 1.1 billions USD) to support the development of Gelephu Mindfulness City. Gelephu Mindfulness City is a new economic zone, which the Bhutanese royal family is developing as a center for sustainable industries and employment.

Reports have disclosed that the allocation was announced on National Day and is positioned as a long-term funding commitment for the city’s development, rather than a quick sale of reserves.

King Announces Bitcoin Allocation Plan

According to King Jigme Khesar Namgyel Wangchuck, this commitment “is for our people, our youth, and our country,” aiming to make every Bhutanese a “guardian, stakeholder, and beneficiary” of the project. The statement indicates that the bitcoin will be allocated directly to the government to support economic development opportunities in the Gelephu region.

Bhutan and Cumberland DRW have signed a multi-year memorandum of understanding, aiming to establish a responsible digital asset ecosystem in Gelephu Mindfulness City under the vision of His Majesty King Jigme Khesar Namgyel Wangchuck.

The collaboration focuses on sustainable digital asset infrastructure... pic.twitter.com/IJR7t3oHYl

— gmcbhutan (@gmcbhutan)December 15, 2025

Digital Reserve Plan

Reportedly, officials stated that the purpose of holding these 10,000 bitcoin is to preserve value and generate returns through prudent risk management strategies, rather than immediately liquidating these holdings.

The government has also signed a multi-year memorandum of understanding with market maker Cumberland DRW to help build digital asset infrastructure and explore reserve management, stablecoins, and renewable energy-based mining in the region.

City Details and Objectives

This “Mindfulness City” covers a vast area and is positioned as an economic solution to address youth migration, low birth rates, and underemployment.

Previous reports described the plan as integrating green energy, technology, tourism, and regulated finance, with space reserved for vetted enterprises and infrastructure projects such as airports and inland ports. Project initiators position it as a way to create higher-value employment opportunities without compromising Bhutan’s environmental and social goals.

Bitcoin is currently trading at $86,397. Chart: TradingView

Partnerships and Practical Steps

Officials stated that the collaboration with Cumberland will focus on building market access and institutional-grade operational systems for the city’s cryptocurrency activities, including piloting a national stablecoin and sustainable mining linked to renewable energy. Local leaders have been seeking legal and investment partners to provide investors with clearer pathways to participate in regional projects.

Global Impact and Risks

Analysts note that this is one of the larger moves by a sovereign nation to use bitcoin as a development tool. The commitment has raised clear questions about governance, transparency, and the potential impact of cryptocurrency price volatility on national finances.

Reports have pointed out both opportunities and risks: these funds can be used to finance major projects, but also require careful oversight to avoid losses that could harm public services.

Cover image from Visit Bhutan, chart from TradingView