Bhutan’s Gelephu Mindfulness City plans to create a strategic cryptocurrency reserve with major assets like Bitcoin and Ether.
A strategic cryptocurrency reserve, which will consist of major crypto assets such as Bitcoin and Ether, is being established by a new economic hub in Bhutan.
Bhutan’s Gelephu Special Administrative Region (SAR), also known as Gelephu Mindfulness City (GMC), disclosed its intention to incorporate digital assets, including Bitcoin, Ether, and BNB, into its strategic reserves in a Jan. 8 announcement.
The inclusion of digital assets in the GMC’s strategic reserves is intended to improve the jurisdiction’s economic resilience and provide new opportunities as a result of its involvement in Bitcoin mining.
The announcement indicated that the city administration anticipates engaging in a conversation regarding its crypto strategic reserve plan with senior Bhutan government officials and global industry leaders in March.
Not Exclusively Bitcoin-Based Strategic Reserve
Bhutan’s GMC, in contrast to other global jurisdictions that are investigating Bitcoin-only strategic reserves, intends to accumulate a variety of established cryptocurrencies as part of its potential crypto strategic reserve.
The administration stated that GMC intends to acknowledge digital assets with substantial market capitalizations and considerable liquidity to guarantee that they can be purchased and sold with minimal price fluctuations.
It was also stated that GMC will endeavor to identify digital assets that are issued on “more mature, secure blockchains that support the monitoring of onchain transactions.”
GMC Will Require 21 Years To Be Completed
The proposal was presented shortly after Bhutan announced a $100 million bond to commence construction of the GMC project in November 2024.
King Jigme Khesar Namgyel Wangchuck envisions the project as an economic corridor that connects South Asia and Southeast Asia, and it is endowed with executive autonomy and legal independence.
According to officials, the GMC will be constructed in phases and is anticipated to be finished within 21 years.
Bhutan Has Already Amassed $1.1 Billion In Bitcoin
The announcement of GMC’s crypto reserve is timely, as the government of Bhutan already maintains Bitcoin and other crypto assets through Druk Holding and Investments (DHI), a commercial arm of the royal government.
Bhutan possesses 11,688 BTC ($1.12 billion) and 656 ETH ($2.2 million), as per Arkham Intelligence.
Druk also maintains small quantities on chains such as Base, BNB Chain, and Polygon.
Bhutan has been investing in Bitcoin since at least 2019, with substantial amounts of BTC originating from local Bitcoin mining operations, according to Forbes.
According to reports, DHI has invested millions of dollars in digital assets and is recognized as a customer of troubled crypto lenders BlockFi and Celsius, in addition to collaborating with major crypto mining firms such as Bitdeer.
