Bhutan is betting big on Bitcoin to build its future. The tiny Himalayan kingdom, known for measuring success in happiness rather than GDP, announced plans to invest $1 billion from its national cryptocurrency reserves to build a “mindfulness city.” The project, officially known as Gelephu Mindfulness City (GMC), aims to transform Bhutan’s economic landscape while remaining true to its Buddhist roots. The government hopes the city will become a vibrant economic and cultural hub, helping to tackle one of Bhutan’s biggest challenges, the increasing migration of youth in search of jobs abroad.

King Jigme Khesar Namgyel Wangchuck announced the billions of dollars during his National Day address on Wednesday, and called on citizens to see the new city as a shared national mission.

According to media reports, he said, “I must ensure that every Bhutanese is a patron, stakeholder and beneficiary of GMC.” “To support this policy, I am today announcing an allocation of up to 10,000 BTC (Bitcoin), valued at approximately $1 billion. This commitment is to our people, our youth, and our nation.”

A high-tech vision rooted in mindfulness

The King of Bhutan first revealed plans for the Gelephu Mindfulness City in 2023, describing it as a “mindfulness city incorporating conscious and sustainable businesses inspired by Buddhist spiritual heritage”. The new development will be located near the Indian border, positioning it as a potential gateway for trade and investment while maintaining deep connections with Bhutan’s environment and culture.

The country’s model of gross national happiness has long emphasized well-being over economic growth. But with unemployment rising and thousands of young Bhutanese migrating abroad for work, the government is under pressure to offer more concrete opportunities. Officials hope the Mindfulness City will attract investors, entrepreneurs and innovators who share Bhutan’s ethos of sustainability and balance.

The project is also part of Bhutan’s broader plan to modernize its economy without sacrificing its environmental values. The carbon-negative nation already earns substantial revenue by exporting hydropower to energy-starved India, and that same clean energy has quietly powered another unlikely venture, cryptocurrency mining.

From hydropower to hash power

Bhutan’s state-run Druk Holdings and Investments (DHI) began investing in cryptocurrency operations in 2021-2022, leading to an estimated $539 million, about one-fifth of the country’s total GDP, invested in the sector, according to the World Bank.

Now, those digital riches are being channeled into bricks, mortar, and mindfulness. $1 billion in Bitcoin funding will support city infrastructure, sustainable business zones and technology projects.

The King has positioned this initiative as a bridge between tradition and innovation, a way to preserve Bhutan’s values ​​while embracing global opportunities. By building a city that blends spiritual heritage with digital age ambition, Bhutan hopes to create jobs, attract global talent and inspire a new generation of domestic entrepreneurs.