DeutschThe Kingdom of Bhutan has announced an investment of 10,000 Bitcoin – currently $870 million – in the GMC. The planned city is expected to grow into a crypto center of global importance. The Asian country has been a pioneer in crypto for years. Now, it is calling on interested parties to help shape a new planned city.
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Bhutan invests $870 million in new crypto center
Bhutan is investing $870 million in a new crypto center – the kingdom announced this a few minutes ago via X. The aim of the investment is the Gelephu Mindfulness City (short GMC), which was proclaimed in 2023 by King Jigme Khesar Namgyel Wangchuck himself and has been under development ever since.
GMC wants to break new ground in many aspects. The special administrative zone in the south of the country is to establish its own laws and thus create tax incentives for foreigners and certain industries who are to settle in the zone. In addition, a center of spirituality and sustainability is to be created.
Crypto is also to play a key role for the city. The aim is to attract important players in the crypto industry to GMC. The kingdom is characterized by its power generation using hydropower and has been an active Bitcoin miner since 2019.
The kingdom maintains a Bitcoin reserve, which is said to have grown to around 11,286 BTC to date, which corresponds to a market value of $982 million. Since 2023, Bhutan has been considered the first country in the world to mine and invest in Bitcoin. The GMC is to build up its own crypto reserve.
With his latest decision, King Wangchuck is making it clear how convinced he is of the project and that he will support it in the long term. Development aid of 10,000 Bitcoin is to be provided to the GMC. This currently corresponds to a market value of $870 million.
“Bhutan has announced a groundbreaking Bitcoin development fund and pledged up to 10,000 BTC to support the long-term development of the Gelephu Mindfulness City (GMC),” according to an official statement.
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This is why Bhutan is relying on Bitcoin
In a statement, the background to the so-called Bitcoin Pledge was revealed. In it, the kingdom commits to Bitcoin in the long term. This decision is primarily justified by the fact that electricity is generated using hydropower, which is both sustainable and cost-effective, thereby enabling profitable Bitcoin mining.
“Bhutan is blessed with abundant hydropower. In some cases, we generate more clean energy than we can consume or export,” they write.
“Instead of leaving this valuable resource unused, we have chosen to convert some of this surplus into a long-term national investment through the responsible mining of Bitcoin,” it continues.
The cryptocurrency is not used for speculation. Rather, BTC is invested in the long term to support the development of the GMC and thus drive Bhutan’s development forward.
The small Asian country, which is home to less than 800,000 inhabitants, would like to gradually establish itself as an important technology location. Bitcoin is intended to make the country more financially resilient.
“We welcome investors, creators and companies who share our long-term perspective and respect the values we live by,” they write, inviting interested parties to help shape the GMC.
In return, they promise a stable and idealistic environment, state-of-the-art digital infrastructure, low bureaucratic hurdles and a young, English-speaking workforce.
