Who Wins the First Bitcoin City Race?

• Bhutan pledges 10,000 BTC to fund Gelephu Mindfulness City, moving faster than El Salvador.
• El Salvador secured $1.6B for port upgrades, but “Bitcoin City” construction lacks a start date.
• Bhutan uses sovereign mining reserves for funding, while El Salvador relies on delayed external bonds.

The global race to construct the world’s first functioning ‘Bitcoin City’ has a new frontrunner. While El Salvador captured headlines with its 2021 announcement, the Kingdom of Bhutan is quietly advancing its own Gelephu Mindfulness City (GMC) with a massive $1 billion sovereign capital injection, signaling that the Himalayan nation may deliver on the concept first.

Bhutan’s approach relies on sovereign equity rather than external debt. The government recently announced a Bitcoin Development Pledge, earmarking up to 10,000 BTC (valued at roughly $1 billion) from its national mining reserves to fund the GMC. This allows the project to proceed without waiting for bond markets or foreign lenders.

Unlike its competitors, GMC is already operationalizing. The 1,000+ square kilometer “Special Administrative Region” has a confirmed masterplan, a legal framework, and a board of directors. Construction crews have begun clearing sites for the project, which aims to integrate Bitcoin mining, green energy, and finance into a single economic corridor connecting South Asia to Southeast Asia.

El Salvador: The Bond Delay

In contrast, El Salvador’s Bitcoin City remains largely in the planning phase four years after its unveiling. 

The project, slated for the base of the Conchagua volcano, was designed to be funded by $1 billion in Volcano Bonds. However, these bonds have faced repeated delays, leaving the city’s construction timeline ambiguous.

Related: El Salvador Secures $1.6B for Bitcoin City Port Transformation

Assessing Which City Moves First

Both initiatives place Bitcoin at the core of national development plans, but their execution paths differ. Bhutan is advancing GMC within an already defined administrative framework, supported by existing Bitcoin reserves and mining operations. El Salvador’s project depends more on external financing and future construction commitments.

Commenting on the developments, Surya noted on X that Bhutan’s model frames Bitcoin as long-term development capital rather than a speculative reserve, highlighting the strategic link between the asset and a specific city project. 

Based on the disclosed information, Bhutan’s plan has progressed further into a structured deployment, while El Salvador’s Bitcoin City remains at the announcement and funding stage.