TLDR
- Bhutan’s Gelephu Mindfulness City (GMC) has announced plans to include Bitcoin, Ethereum and BNB in its strategic reserves, making it one of the first jurisdictions to do so
- GMC will focus on buying digital assets with large market capitalizations and deep liquidity, while studying other assets on stable blockchains
- Government of Bhutan recently sold millions worth of Bitcoin as prices exceeded $100,000, but still has $1.11 billion in BTC
- The initiative is part of GMC’s broader strategy to advance blockchain technology and serve the South Asian region’s 2+ billion people
- The GMC plans to establish an international advisory panel and a financial services regulatory framework for digital assets
Bhutan’s Gelephu Mindfulness City (GMC), a special administrative region, announced on January 8, 2025 its decision to include major cryptocurrencies in its strategic reserves. The plan includes Bitcoin (BTC), Ethereum (ETH) and Binance’s BNB, marking a historic step in the region’s economic strategy.
GMCpositioned as a gateway to South Asia’s growing economies, aims to serve more than two billion people in the region. This strategic location has influenced its decision to embrace blockchain technology and digital assets as part of its financial foundation.
In its official announcement, the GMC outlined specific criteria for selecting digital assets. The administration will focus on cryptocurrencies with significant market capitalizations and proven liquidity. This approach aims to minimize price impact during any future buying or selling activities.
New financial data from Arkham Intelligence reveals that Bhutan’s government has already been active in the cryptocurrency market. The government has sold millions worth of Bitcoin over the past two months, taking advantage of Bitcoin’s price surge above $100,000. Despite these sales, Bhutan holds a significant position, holding approximately $1.11 billion in Bitcoin.
The special administrative region’s decisions extend beyond just holding digital assets. The GMC is developing a comprehensive legal and regulatory framework to support companies interested in providing financial services involving digital assets in the region.
GMC’s announcement has drawn attention from big names in the cryptocurrency industry. Binance co-founders Changpeng “CZ” Zhao and Yi He have expressed their support for the initiative. The BNB Chain team has called it a “major milestone for blockchain adoption.”
Today we are all Bhutanese. https://t.co/YUyvsHPbSJ
— Yi He (@heyibinance) January 8, 2025
The implementation plan includes establishing an international advisory panel specifically focused on digital assets. This panel will help guide the GMC’s cryptocurrency strategy and ensure best practices for managing these digital reserves.
In addition to holding cryptocurrencies, GMC continues its involvement in Bitcoin mining. This dual approach to mining and holding digital assets shows the region’s overall strategy for using cryptocurrency.
The Special Administrative Region plans to explore additional digital assets issued on stable and secure blockchains. The GMC emphasizes the importance of transaction monitoring in the chain in its selection criteria.
Market response to the announcement has been positive, with Bitcoin, ETHand BNB prices show upward momentum. This movement provides some recovery after recent market-wide liquidations.
To support this initiative, the GMC is organizing high-level meetings with international leaders to discuss the adoption of cryptocurrency as part of strategic reserves. These discussions aim to establish best practices and share insights with other jurisdictions considering similar measures.
The administration’s approach to using cryptocurrency is in line with Bhutan’s broader economic modernization efforts. GMC’s strategy represents a balance between innovation and practical economic considerations.
The decision places the GMC among the first jurisdictions in the world to formally include digital assets in strategic reserves. This move sets a precedent for other regions considering similar policies.
Development of technical infrastructure is underway to support these holdings. GMC implements secure storage solutions and monitoring systems to effectively manage its digital asset portfolio.
The framework contains provisions for regular review and adjustment of holdings based on market conditions and technological developments. This flexible approach allows GMC to adapt its strategy as the cryptocurrency market evolves.
