Bhutan continues to leverage new technologies, particularly Bitcoin and blockchain, to boost its economy. According to several reports, Gelephu Mindfulness City (GMC) is ready to integrate digital assets such as Bitcoin, BNB and Ethereum into its strategic reserve.
The City of Mindfulness, near Gelephu, is a newly created special administrative region that will serve as the country’s economic center and tourist attraction. Bhutan’s King Jigme Khesar Namgyel Wangchuck has said it is a modern city rooted in innovation, so his announcement of a strategic Bitcoin and crypto reserve is not surprising to many.
A major step for blockchain adoption! ✨⛰️
Gelephu Mindfulness City (GMC), the new Special Administrative Region of Bhutan, has just announced that it will hold BNB, BTC and ETH as part of its strategic reserve.Learn how the inclusion of BNB highlights global trust in the BNB chain…
– BNB Channel (@BNBCHAIN) January 8, 2025
Bhutan continues its Bitcoin strategy
Bhutan is one of the first countries to understand the potential of Bitcoin and blockchain technology. This small Asian kingdom in the Himalayas began mining Bitcoin in April 2019, when the world’s first digital asset was trading at $7,000. Druk Holdings and Investments (DHI) and Green Digital Limited (GDL) are the country’s investment companies.
Source: Arkham Intelligence
Thanks to an early start in Bitcoin mining and adoption, Bhutan now has significant Bitcoin holdings. According to Bitwise Europe, Bhutan currently holds over 11,000 Bitcoins, and this number will continue to grow with Mindfulness City’s recent announcement to add more BTC and crypto to its strategic reserve.
The same Bitwise Europe chart also indicates that the United States remains the largest sovereign holder of Bitcoin, with around 198,000 Bitcoins, and that China is second on the list.
📌 𝗖𝗵𝗮𝗿𝘁-𝗼𝗳-𝘁𝗵𝗲-𝗪𝗲𝗲𝗸 📌
Based on the latest publicly available information, the United States still remains the largest sovereign holder of Bitcoin with approximately 198,000 BTC on the government balance sheet, followed closely by China. pic.twitter.com/L3j5o95Oyx
– Bitwise Europe (formerly ETC Group) (@Bitwise_Europe) December 18, 2024
Bhutan Bitcoin Mining Initiative
Currently, Bhutan is gradually developing its crypto mining facilities in cooperation with Bitdeer Technologies. Initially, the kingdom launched a facility with a capacity of 100 MW and is currently operational. The government aims to start its second facility by mid-year, with a larger capacity of 500 MW.
Interestingly, Bhutan has developed a plan to help offset the notoriously high energy consumption associated with cryptocurrency mining. Unlike other mining companies, the Kingdom has exploited its hydroelectric resources to operate its facilities.
Bhutan’s 100 MW mining center at Gedu runs on hydroelectric power and is environmentally friendly. The Gedu facility has over 30,000 crypto mining machines and can produce three to five BTC per day.
Bitcoin politics is becoming more and more popular
Bitcoin and cryptos are now widely integrated into many government policies, particularly as part of a reserve of strategic assets. The United States remains the industry leader, at least in its efforts to integrate Bitcoin and cryptos into its national agenda. Last year, Senator Cynthia Lummis introduced a bill allowing the government to establish a strategic reserve.
China is another country slowly adopting Bitcoin and blockchain into its financial system. El Salvador, on the other hand, has increased its efforts to add more Bitcoin to its national treasury. Nonetheless, Bhutan remains a unique case for its independent Bitcoin facility that prioritizes eco-friendly technologies.
Featured image from Pexels, chart from TradingView
