Bhutan makes a major bet on Bitcoin to build the future economic hub

Author: Ashrith Rao; Translation: Baihua Blockchain

Bhutan is taking a significant step into the cryptocurrency space, announcing a allocation of up to 10,000 Bitcoin (BTC) (approximately $1 billion USD) to fund the “Gleup Mindfulness City” initiative.

For years, Bhutan’s government investment arm Druk Holding & Investments (DHI) has been mining Bitcoin using renewable energy. Currently, the country has become one of the leading Bitcoin holders globally, with reserves exceeding 11,000 BTC.

To achieve sustainable development, the government plans to support GMC’s development through collateralized loans and revenue generation rather than directly selling Bitcoin. This special administrative region will attract enterprises in finance, tourism, green energy, and technology.

Core Plan

Gleup’s plan aligns with its philosophy of Gross National Happiness and its commitment to environmental sustainability. Its goals are to increase local employment opportunities, reduce youth outmigration, and make Bhutan a leader in digital asset creation.

King Jigme Khesar Namgyel Wangchuck of Bhutan stated: “To support this policy, I announce a allocation of up to 10,000 Bitcoin. This commitment is for our employees, our youth, and our country.”

This commitment is based on three fundamental concepts:

1. Utilizing hydropower for continuous mining, transforming clean energy into wealth.
2. Using mining profits to improve the economic and social conditions of the people.
3. Encouraging global partners to participate in Bitcoin strategy, emphasizing long-term commitment and trust.

The Himalayan Kingdom’s Crypto Path

Bhutan is the first sovereign nation in the world to develop a Bitcoin mining plan. The government increases reserves through sustainable energy practices, converting surplus electricity into a non-sovereign store of value.

Currently, Bhutan has integrated blockchain technology at multiple levels:

• BN Pay: A national tourism payment system launched in May 2025, allowing tourists to use over a hundred cryptocurrencies.
• TER Token: A gold-backed digital token launched on the Solana blockchain.
• Digital Identity (NDI): A blockchain-based national digital identity system covering 800,000 residents.

Key Milestones and Strategies

Bhutan’s attitude toward Bitcoin is more of a governance strategy than speculation.

• Energy Transition: Previously, Bhutan relied on electricity exports, heavily influenced by seasonal demand. Bitcoin mining provides a year-round monetization channel, transforming surplus energy into a sovereign digital reserve.
• Financial Backing: In 2023, Bhutan funded substantial salary increases for civil servants by selectively selling BTC, stabilizing public sector talent.
• Regulatory Experimentation: Regulatory changes in 2025 will restrict mining and trading to registered entities related to Gleup Mindfulness City, indicating the government’s preference for controlled experiments rather than retail speculation.

Summary: Cautious Betting on Sovereign Cryptocurrency

The Gleup initiative represents Bhutan’s shift from tactical use to structured integration. By employing Bitcoin for collateral and revenue strategies, Bhutan aims to achieve capital accumulation and economic growth without relying on external financing.

While this model faces challenges in risk management and market volatility, it offers a reference for other countries: Digital assets can serve as a cornerstone of national economic planning, not just fringe assets.