Bhutan vs. El Salvador: Who will build first Bitcoin city?

Traders Union
All News
Editors' Picks
Bhutan vs El Salvador

All for the youth

To implement the project, Bhutan’s authorities plan to deploy up to 10,000 bitcoins from the state reserve. If this happens, it would become one of the largest examples of a nation-state using crypto assets to finance an economic development project.

Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

In total, investments in the project could reach up to $875 million, and officials stress that the approach to using BTC will be conservative. The priority is capital preservation and its gradual growth through balanced treasury strategies, rather than aggressive selling. Bitcoin is viewed as an asset capable of compounding value over time, while any operations involving the reserve are expected to be governed by transparency, risk management, and strict oversight.

This move fits into Bhutan’s broader national strategy, where bitcoin and hydro-powered mining have been used for several years as tools for economic development. Using part of the reserve to build and launch GMC is meant to transform crypto holdings from a passive asset into the foundation of a new economic zone focused on fintech, technology, and green energy.

But why is all this needed? The main goal of the project is to stimulate tourism and keep young people in the country. Gelephu Mindfulness City is designed as a new magnet for international visitors, entrepreneurs, and specialists, as well as a source of high value-added jobs, so that young Bhutanese do not leave the country in search of careers and opportunities abroad. And yet, this is far from the world’s first initiative aimed at creating a Bitcoin-focused location.

Bitcoin City in El Salvador

Bitcoin City in El Salvador was announced in November 2021. President Nayib Bukele presented the project near the Conchagua volcano in the eastern part of the country. The plans were ambitious: geothermal-powered mining and the creation of a crypto hub with minimal tax pressure. From the start, the project was framed as a symbol of a new economic model in which bitcoin would become part of the city’s infrastructure.

Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

At its core, Bitcoin City was conceived as a showcase for bitcoin and a large-scale cryptocurrency experiment. The city was supposed to be financed through special bitcoin bonds, with the entire concept built around one idea — maximum integration of BTC into the economy, energy system, and investment model of the future city.

But a project of this scale required substantial funding. In August 2024, the government announced the attraction of $1.6 billion in private investment from Turkish holding company Yilport, intended to support the development of the region and its key infrastructure. However, despite the large sums and loud statements, the prospects of Bitcoin City remain uncertain: there is still no information about the start of construction — no timelines and no confirmed implementation stages.

A quiet strategy versus loud statements

Can the Bitcoin initiatives of the two countries be compared? Yes, but with caveats. These projects have chosen fundamentally different approaches to using bitcoin at the state level. Bhutan acts quietly and consistently: the country spent years developing mining based on green energy, accumulating BTC without loud announcements, and is now trying to integrate this resource into a long-term economic strategy through a special administrative region.

El Salvador, by contrast, chose a path of publicity and bold messaging from the very beginning. Bitcoin City became one of the most recognizable crypto projects in the world, yet several years after its announcement it has still not moved into the stage of real construction. Against this backdrop, Bhutan’s chances look more convincing: less noise, more pragmatism, and an already functioning bitcoin infrastructure. This approach may give the kingdom an edge in the quiet race to build the world’s first truly operational Bitcoin city.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.