As nations 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 cryptocurrencies, has embraced blockchain technology to support its digital yuan. Amid these changes, Bhutan stands out, not for following global trends, but for charting its own path.
Located in the Himalayas between China and India, Bhutan has long challenged conventional economic models. Instead of prioritizing Gross Domestic Product (GDP), the country measures success using Gross National Happiness (GNH), focusing on the well-being of its citizens. Under the leadership of King Jigme Khesar Namgyel Wangchuck, Bhutan is now integrating blockchain and Bitcoin into its sustainable development vision. Projects such as the creation of a “Mindfulness City” in Gelephu highlight Bhutan’s approach to fusing technology, culture and sustainability.
I’ve been lucky enough to visit Bhutan twice in the last few years, and from the moment I arrived, I felt an unbreakable connection to the country. During my visit to the Bhutan Technology Park in Thimphu, I participated in several conversations about the “Mindfulness City” initiative and learned about bitcoin mining in Bhutan. While the country has been discreet about its Bitcoin mining operations, its growing interest in the field is undeniable. Bhutan is not only preserving its rich traditions but is also boldly embracing emerging technologies as tools to promote 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 exceed $1 billion, making it one of the largest sovereign holders of digital assets, according to Bitwise Europe. In 2023, these holdings represent approximately 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 gradual development process with Bitdeer Technologies Group. The first phase, with a capacity of 100 megawatts, is already operational. A second phase aims to add 500 megawatts by mid-2025. The project is powered by Bhutan’s abundant hydroelectric resources, ensuring mining is sustainable and efficient. The $500 million fund established in May 2023 with Bitdeer underlines 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 was Bhutan’s first large-scale Bitcoin mining venture. It uses the country’s hydroelectric power to mine bitcoins in an environmentally responsible way. The facility currently houses 30,000 mining machines, likely producing three to five bitcoins per day, generating daily revenue of between $317,400 and $529,000 at current prices. This strategic approach allows Bhutan to generate consistent income from bitcoin mining while mitigating market volatility. The project also creates local jobs, contributing to the country’s broader economic transformation.
City of Mindfulness: A Plan for the Future
The “Mindfulness City” in Gelephu is less of a traditional city and more of a transformative development project aimed at fulfilling Bhutan’s long-term vision. In his National Day speech on December 17, King Jigme Khesar Namgyel Wangchuck highlighted the project’s goal of creating opportunities for Bhutanese youth, encouraging them to stay in the country instead of seeking opportunities abroad. “It is crucial to balance economic growth with the preservation of Bhutan’s natural beauty, culture and values,” the King said.
Spanning more than 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 between South 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 investments with a business-friendly environment.
The project will focus on seven key sectors: agricultural technology, finance, education, green energy, health, high technology 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 by Matrixport, a global crypto financial services company, for a 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 building a regulated environment for digital assets and blockchain, reinforcing its strategy to attract global players while maintaining its commitment to sustainable and culturally conscious development.
Happiness as an economic paradigm
Bhutan’s focus on happiness challenges traditional economic models. The GNH framework, introduced in the 1970s, measures national success across health, education, community vitality and environmental stewardship. This holistic approach complements blockchain’s potential to create fairer and more transparent systems.
Blockchain technology can support the objectives of Bhutan’s GNH by improving accountability in public projects and ensuring fair distribution of resources. For example, Bhutan repurposed its “Education City” into a Bitcoin mining hub, illustrating how technology can meet local needs while contributing to global innovation.
Bhutan’s experience demonstrates how small nations can leverage their strengths to lead emerging technologies. With a population of only 700,000, Bhutan can implement policies quickly 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 preservation.
As Bhutan advances its development strategy, the King’s vision offers a clear path forward, combining tradition with modernity. “Mindfulness City” represents Bhutan’s goal of creating a thriving society where technology serves the country’s people and their unique cultural values.
For the global community, Bhutan’s adoption of blockchain and Bitcoin presents an alternative vision of success, one that prioritizes well-being over profits. In a world of rapid technological change, Bhutan shows how technology can promote sustainable growth while preserving cultural identity. This innovative approach demonstrates that even small nations can lead by example, demonstrating how technology can benefit humanity rather than divide it.
