Bhutan Allocates One Billion Dollars in Bitcoin for Urban Development Project – Study Shows Crypto Trend Among Young Germans

Bhutan Makes Bitcoin a National Strategy

The Kingdom of Bhutan has officially integrated Bitcoin into its national strategy, marking a significant step toward institutional crypto adoption. The country, located between India and China and known for its concept of Gross National Happiness, is combining economic innovation with the protection of culture, environment, and future generations ^[1].

Since 2019, Bhutan has been operating Bitcoin mining through the state-owned investment company Druk Holding & Investments (DHI) using surplus hydroelectric power, and has continuously expanded its mining capacity ^[1]. Through this approach, the kingdom has built a strategic Bitcoin reserve, which has already been partially used to finance economic stabilization measures and other government expenditures ^[1].

One Billion Dollars for Gelephu Mindfulness City

As part of its Bitcoin initiative, Bhutan plans to allocate up to 10,000 BTC – equivalent to approximately one billion US dollars – for the development of Gelephu Mindfulness City (GMC) ^[1]. The sustainable urban development project was launched exactly two years ago by King Jigme Khesar Namgyel Wangchuck ^[1].

The Bitcoin strategy focuses on several key areas: The "conversion of clean energy into long-term national value" through Bitcoin mining and a long-term holding strategy are at the forefront ^[1]. Additionally, there are plans to sell the sustainably mined Bitcoin, similar to carbon credits, to companies seeking to achieve their ESG goals ^[1].

Furthermore, Bhutan is promoting the use of crypto assets as part of digital identity systems and in the tourism sector ^[1]. The goal is to create qualified jobs, stem rural exodus and brain drain, and stimulate economic growth in a careful and sustainable manner ^[1].

Crypto Overtakes Gold Among Young Germans

While Bhutan is adopting Bitcoin at the state level, Germany is also showing a marked trend toward crypto acceptance – though primarily among younger generations. A new study by crypto exchange BISON, conducted by market research institute Marketagent with 2,000 representative online surveys of people between 18 and 70 years old, paints a nuanced picture of the German financial landscape ^[2].

Among those under 39, crypto has overtaken gold as a diversification tool: 27 percent of 30- to 39-year-olds invest in cryptocurrencies, compared to 24 percent in precious metals ^[2]. At the same time, 48 percent of crypto investors view digital assets as a long-term component of retirement planning ^[2].

AI as a Driver for Financial Decisions

The study identifies artificial intelligence as a potential equalizer for existing educational and income disparities in the financial market. Fifty percent of 19- to 29-year-olds see AI tools like ChatGPT as an important component of their financial decisions, while this figure stands at twelve percent among those over 60 ^[2].

Nearly half of Germans expect blockchain technologies to become part of everyday life within five to ten years, with this expectation particularly high among younger age groups ^[2]. BISON CEO Ulli Spankowski stated that AI tools and digital assets could facilitate financial inclusion, while the integration of previously excluded population groups remains a central challenge ^[2].

However, the study also points to a significant "trust gap": While approximately one in two respondents with a high school diploma trusts the financial sector, only 33 percent of those without a high school diploma do ^[2]. The divide is even more pronounced by income: 55 percent of high earners express confidence in the financial market, compared to 21 percent among people with below-average income ^[2].