Bhutan Commits 10,000 BTC to Build Gelephu Mindfulness City
Key Highlights Bhutan has pledged 10,000 BTC from its national reserve to support the development of Gelephu Mindfulness City. The government plans to fund infrastructure through collateralized lending and...
Key Highlights
- Bhutan has pledged 10,000 BTC from its national reserve to support the development of Gelephu Mindfulness City.
- The government plans to fund infrastructure through collateralized lending and yield strategies rather than selling its digital assets directly.
- This initiative aims to diversify Bhutan’s economy and create high-value jobs by establishing a 1,500-square-mile special administrative region along the Indian border.
The Royal Government of Bhutan has committed 10,000 Bitcoin (BTC) from its reserves to fund the initial development of Gelephu Mindfulness City. Organized on a Special Administrative Region model, the project will draw on Bitcoin reserves valued at nearly $900 million at current market prices to support infrastructure and a new economic center.
The plan, announced on Wednesday, is designed to leverage Bhutan’s Bitcoin wealth for setting up a sustainable and tech-savvy center, keeping in mind its own unique philosophy of development. The initiative involves the establishment of a huge economic zone in Southern Bhutan geared towards attracting foreign investment and expertise.
Utilizing mined assets for sovereign development
Through the allocation of a certain part of their Bitcoin holdings, the Bhutanese government aims to provide liquidity for high-tech infrastructure projects and green energy plants in the zone. Arkham Intelligence data shows that the country’s wealthiest sovereign organ, Druk Holding and Investments, holds nearly $500 million in Bitcoin, though this is only onchain disclosed holdings.
This is the result of the accumulated effort and mining of the Himalayan nation over the years. Bhutan, unlike many countries that have shown reluctance towards digital currency, began several years ago taking advantage of the hydroelectric power sources of the nation and utilizing them for Bitcoin mining.
The concept of the project for the establishment of the Gelephu Mindfulness City began taking shape at the time the nation realized the need to retain the youth by providing them with lucrative employment opportunities and preventing them from moving away. Mined assets were seen as an alternative source of funding for the nation’s largest infrastructure project ever.
Institutional partnerships and market infrastructure
Bhutan has also entered into a partnership with Cumberland DRW, a global leader in specialized crypto liquidity and trading. This collaboration provides the institutional-grade infrastructure and liquidity management necessary for the Gelephu Special Administrative Region to function as a premier digital asset hub.
By integrating Cumberland’s technical expertise, the Bhutanese government aims to ensure the seamless execution of its Bitcoin-backed financial strategies while maintaining high standards of market transparency and security.
If successful, the Gelephu Mindfulness City is likely to provide a template through which small, rich countries can move towards digital wealth and ultimately achieve material prosperity.
Also Read: Bhutan Teams Up with Cumberland DRW to Build Digital Asset Hub
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