The Bhutanese Leading the way.
The 118th National Day Royal Address focused primarily on the Gelephu Mindfulness City (GMC), and within this, there were a few big and far-reaching announcements that, over time, will be the largest transfer of wealth to all Bhutanese.
His Majesty The King said, “GMC will be structured as a company, with shares tied to land holdings. Landowners will retain their stake. Of the one million acres within GMC, 94 percent is state land, reserved for Bhutan and shared among the people of all 205 gewogs.”
A rough calculation shows that every Bhutanese share will be around 1.19 acres each.
However, this does not mean that tomorrow Bhutanese can go to GMC asking for their 1.19 acres to build upon, as the value will be as a share, and not literal land being handed out.
It is similar to owning the shares of a company whose value goes up over time, and you can get dividends when there is good revenue, but you cannot claim a vehicle or furniture of the company just because you own shares.
A source said that His Majesty’s words of “shares” are much better than ‘tokenization,’ as shares make sense to Bhutanese, and in due time, there will be returns on that.
On the land part, His Majesty expressed his deep worry that people in the largely rural GMC could lose their land by selling it to the more well-off, as it happened in Thimphu and Paro, and GMC even involves wealthy international investors.
His Majesty said we must ensure that this land remains in the hands of the Bhutanese people.
“Moreover, GMC is a project for all Bhutan. It must benefit every Bhutanese equitably, including those who do not currently own land within Gelephu. Ownership fosters commitment, and commitment must be intergenerational and safeguarded. Every Bhutanese must contribute, shape, and protect the future of GMC, and in doing so, the future of Bhutan. With dedication, shared responsibility, and determination, GMC will rise to its full potential,” said His Majesty in the context of allocating GMC land as shares to the people.
Another major announcement by His Majesty was on the financial backing for GMC. Here, His Majesty said, “To provide a strong financial backing, from the Bitcoin mining project which we so carefully undertook a few years ago, 10,000 BTC, valued at around USD 1 billion, will be allocated to GMC as a long-term strategic reserve. This ensures that the project is secure and its benefits are preserved for our people, our youth, and our nation.”
The combined effect of 94 percent of GMC land being issued as shares to every Bhutanese and USD 1 billion being issued as capital for the project owned by Bhutanese means that this is, in effect, the largest single wealth transfer from the government to the people in Bhutan’s history.
This also ends up giving a stake to every Bhutanese in the GMC project.
A source said, “The Bitcoin is like show money and an equity portion, where foreigners know we have skin in the game, and also about values where we know we can control the values and are not at the mercy of foreigners dictating everything.”
The source said it also shows patience using modern investment vehicles.
The source said the Bitcoins will be kept as a reserve and not spent in one go. They will be used to fund parts of hard infrastructure projects, as well as softer elements like hiring skilled people, etc.
Another major announcement was that GMC has received over 50 applications from international companies, of which 28 have been approved for next year and 33 are under review.
The source said these companies are attracted to the values of Bhutan, the environment, and it also goes beyond dollars and cents. It is about something special being in GMC.
The source said GMC avoided announcing these companies earlier, even though there was some anxiety from observers around investors, but they wanted His Majesty to announce it as it has more credibility.
One or two are already registered, with one having an office in Thimphu that will move down to GMC. Some of the companies are partners in GMC executing works, while there are other companies who want to invest.
His Majesty said 70 buildings in the existing Gelephu town are being renovated to combine the beauty of Bhutanese architecture with international standards of comfort. When these offices are set up, they will bring in many new people to Gelephu, as well as well-paying jobs for our youth.
His Majesty said Asia is rising. India and China together account for more than a third of the world’s population and are among the fastest-growing economies. Our region is gaining momentum, and the world’s leading companies are looking to Asia for opportunity. GMC will be a place where business can be conducted with confidence, supported by strong institutions, clear laws, and reliability. Asia holds the future, and we will build the gateway to Asia.
His Majesty said GMC will not replicate what has been done elsewhere or lose sight of who we are.
His Majesty said, “If this project were to fail, we could always return to simpler livelihoods, but with careful planning and collective effort, its success will surpass all expectations. And I am determined that GMC will succeed, and its benefits accrue to all Bhutanese.”
