As countries explore the implications of digital currencies, Bitcoin is becoming part of national strategies. El Salvador made headlines as the first country to adopt Bitcoin as legal tender, while the United States is considering a national Bitcoin reserve. Even China, despite its cautious stance on cryptocurrency, has embraced blockchain technology to support its digital yuan. Amid these changes, Bhutan stands out — not by following global trends, but by charting its own path.
Located in the Himalayas between China and India, Bhutan has long defied conventional economic models. Instead of prioritizing Gross Domestic Product (GDP), the country measures success using Gross National Happiness (GNH), which focuses on the well-being of its citizens. Under the leadership of King Jigme Khesar Namgyel Wangchuck, Bhutan is now incorporating blockchain and Bitcoin into its vision for sustainable development. Projects such as the creation of a “Mindfulness City” in Gelephu highlight Bhutan’s approach to integrating technology, culture, and sustainability.
I have been fortunate enough to visit Bhutan twice over the years, and from the moment I first arrived, I felt an unshakable connection to the country. During my visit to Bhutan’s tech park in Thimphu, I talked about the “Mindfulness City” initiative and learned about bitcoin mining in Bhutan. While the country has been cautious about its Bitcoin mining operations, its growing interest in the field is undeniable. Bhutan not only preserves its rich tradition but also boldly embraces emerging technologies as tools to advance its unique development philosophy.
Bitcoin Mining: A Quiet Revolution in the Himalayas
Druk Holding and Investments (DHI), Bhutan’s investment arm, and Green Digital Limited (GDL) started mining Bitcoin when prices were around $5,000. Today, Bhutan’s Bitcoin reserves have surpassed $1 billion, making it one of the largest sovereign holders of digital assets, according to Bitwise Europe. By 2023, these holdings will represent about 34.48% of the country’s $2.9 billion GDP, according to World Bank data. This reflects Bhutan’s strategic use of cryptocurrency as an economic asset.
Bhutan is expanding its mining infrastructure through a phased development pipeline with Bitdeer Technologies Group. The first phase, with a capacity of 100 megawatts, is already operational. The second phase aims to add 500 megawatts by mid-2025. The project is fueled by Bhutan’s abundant hydropower resources, ensuring that mining is both sustainable and efficient. The $500 million fund established in May 2023 with Bitdeer underscores Bhutan’s focus on attracting foreign direct investment (FDI) and strengthening its position in the global Bitcoin mining landscape.
The construction of a 100-megawatt crypto-mining data center in Gedu is Bhutan’s first large-scale Bitcoin mining venture. It uses the country’s hydroelectric power to mine bitcoin in an environmentally responsible manner. The facility currently houses 30,000 mining machines, which probably produce three to five bitcoins daily, generating a daily profit of $317,400 to $529,000 at today’s prices. This strategic approach allows Bhutan to generate stable income from bitcoin mining while mitigating market volatility. The project also creates local jobs, contributing to the country’s broader economic transformation.
Mindfulness City: A Blueprint for the Future
The “Mindfulness City” in Gelephu is less of a traditional city and more of a transformative development project that aims to fulfill Bhutan’s long-term vision. In his National Day speech on December 17, King Jigme Khesar Namgyel Wangchuck, highlighted the project’s aim to create opportunities for young Bhutanese, encouraging them to stay in the country instead of looking for opportunities abroad. “Balancing economic growth with preservation of Bhutan’s natural beauty, culture, and values is very important,” said Hari.
Covering over 2,500 km², Mindfulness City is designed to integrate sustainable development with modern technologies, including blockchain and artificial intelligence. Gelephu’s location, at the crossroads of South Asia and Southeast Asia, makes it a strategic center for economic activity. As a Special Administrative Region (SAR), the city aims to attract both domestic and international investment with a business-friendly environment.
The project will focus on seven key sectors: agritech, finance, education, green energy, health, high-tech, and spirituality. By diversifying its economy, Bhutan seeks to combine technological progress with its cultural values. A recent development within this framework is the application of Matrixporta global crypto financial services company, for the Financial Services Permit License to operate in Mindfulness City. Matrixport is the first company to apply under the city’s new regulatory framework for financial services and virtual assets. This move highlights Bhutan’s interest in developing a regulated environment for digital assets and blockchain, reinforcing its strategy to attract global players while maintaining its commitment to sustainable and culturally mindful development.
Happiness as an Economic Paradigm
Bhutan’s focus on happiness challenges traditional economic models. The GNH framework, introduced in the 1970s, measures national achievement through health, education, community vitality, and environmental protection. This holistic approach complements blockchain’s potential to create fairer, more transparent systems.
Blockchain technology can support Bhutan’s GNH goals by enhancing accountability in public projects and ensuring equitable distribution of resources. For example, Bhutan remade its “Education City” into a Bitcoin mining hub, illustrating how technology can meet local needs while contributing to global innovation.
Bhutan’s experience shows how small countries can use their strengths to take the lead in emerging technologies. With a population of only 700,000, Bhutan can quickly implement policies and adapt to changes. The country’s use of hydropower for Bitcoin mining sets a global example of environmentally responsible practices in the cryptocurrency industry. This approach reduces the carbon footprint of mining while aligning with Bhutan’s commitment to environmental protection.
As Bhutan advances its development strategy, the King’s vision offers a clear path forward, combining tradition with modernity. “Mindfulness City” represents Bhutan’s aim to create a prosperous society where technology serves the country’s people and its unique cultural values.
For the global community, Bhutan’s adoption of blockchain and Bitcoin represents an alternative vision of success — one that prioritizes well-being over profit. In a world of rapid technological change, Bhutan shows how technology can promote sustainable growth while preserving cultural identity. This innovative approach proves that even small countries can lead by example, showing how technology can benefit humanity rather than divide it.
