Emily Walker
Bhutan is actively exploring modern technologies, especially Bitcoin and blockchain, to enhance its economy. Recent reports indicate that Gelephu Mindfulness City (GMC) is set to incorporate digital assets such as Bitcoin, BNB, and Ethereum into its strategic reserve.
This newly formed administrative region near Gelephu aims to become the economic center and tourist destination for Bhutan. As shared by King Jigme Khesar Namgyel Wangchuck, this innovative city’s announcement regarding a Bitcoin and crypto reserve has sparked little surprise among observers.
A significant development in blockchain integration!
Gelephu Mindfulness City (GMC) has just declared its intention to include BNB, BTC, and ETH as part of its strategic financial reserve.Discover how the addition of BNB signifies global confidence in the BNB Chain…
— BNB Chain (@BNBCHAIN) January 8, 2025
Bhutan’s Ongoing Bitcoin Initiatives
Bhutan is among the pioneers in recognizing the benefits of Bitcoin and blockchain tech. The Himalayan nation began its Bitcoin mining activities in April 2019 when Bitcoin was valued at around $7,000. The two main organizations overseeing this effort are Druk Holdings and Investments (DHI) along with Green Digital Limited (GDL).
Due to its early foray into Bitcoin mining, Bhutan has amassed a significant amount of Bitcoin holdings. Reports from Bitwise Europe suggest the country currently possesses over 11,000 Bitcoins, a figure expected to rise further as Mindfulness City seeks to bolster its crypto reserve.
The same report outlines that the U.S. leads as the largest sovereign holder of Bitcoin, possessing approximately 198,000 Bitcoins, with China following closely.
𝗖𝗵𝗮𝗿𝘁-𝗼𝗳-𝘁𝗵𝗲-𝗪𝗲𝗲𝗸
According to the latest data, the U.S. continues to be the top sovereign Bitcoin holder, with roughly 198k BTC in its government’s assets, closely followed by China. pic.twitter.com/L3j5o95Oyx
— Bitwise Europe (formerly ETC Group) (@Bitwise_Europe) December 18, 2024
Bhutan’s Crypto Mining Development
At present, Bhutan is strategically developing its cryptocurrency mining operations in collaboration with Bitdeer Technologies. The kingdom has initiated a mining facility with a capacity of 100MW, which is already in operation. Plans are underway to establish a second facility by mid-year, capable of operating at 500MW.
Notably, Bhutan has devised a way to mitigate the significant energy needs of crypto mining. In contrast to other mining initiatives, Bhutan utilizes its abundant hydropower resources to power its operations.
The 100MW mining site in Gedu operates on hydroelectric power, leading to a more sustainable production method. This facility houses over 30,000 cryptocurrency mining machines, generating around three to five BTC daily.
Rising Popularity of Bitcoin Policies
Bitcoin and other cryptocurrencies are increasingly becoming integral to various government strategies, mainly as part of a strategic asset reserve. The U.S. remains at the forefront of this endeavor, with initiatives aimed at incorporating Bitcoin into national policy. Recently, Senator Cynthia Lummis proposed legislation to create a strategic reserve for Bitcoin.
China is also gradually integrating Bitcoin and blockchain technologies within its financial system. On the contrary, El Salvador has intensified its commitment to accumulate more Bitcoin for its national treasury. However, Bhutan stands out for its unique independent Bitcoin operation that emphasizes environmentally sustainable practices.
Featured image from Pexels, chart from TradingView