- Bhutan’s Gelephu Mindfulness City plans to recognize digital assets like Bitcoin, Ether, and BNB as part of its strategic reserves.
- The city aims to enhance its economic resilience and leverage opportunities from Bitcoin mining by including cryptocurrencies in its reserves.
- Bhutan’s government already holds significant amounts of Bitcoin and other cryptocurrencies through its commercial arm, Druk Holding and Investments.
Bhutan, a nation renowned for its focus on Gross National Happiness over Gross Domestic Product, is making strides in the digital realm. The economic hub Gelephu Mindfulness City (GMC) in Bhutan has recently announced its plan to establish a strategic cryptocurrency reserve. This reserve will include major crypto assets like Bitcoin, Ether, and BNB, reinforcing its economic resilience and opening up new investment opportunities.
Implementing a Diverse Crypto Reserve
Unlike other jurisdictions that are exploring Bitcoin-only strategic reserves, Bhutan’s GMC is looking to diversify. The plan involves setting up a strategic reserve of established cryptocurrencies. Key considerations for inclusion in the reserve include the digital asset‘s market capitalization and liquidity. The GMC administration is planning discussions with senior Bhutan government officials and global industry leaders in March to further the plan.
Investing in Secure, Mature Blockchains
In addition to the diversity of the reserve, GMC also emphasizes the importance of security. The hub plans to include digital assets issued on mature, secure blockchains that support monitoring of on-chain transactions. This approach will ensure the safety and transparency of all transactions.
GMC: A Long-Term Project
The announcement of the crypto reserve follows Bhutan’s announcement of a $100 million bond to start building the GMC project in November 2024. The project, which will serve as an economic corridor linking South Asia to Southeast Asia, is expected to be completed in 21 years. The GMC will be built in phases and will operate with executive autonomy and legal independence.
Bhutan’s Existing Crypto Assets
The plans for the GMC’s strategic crypto reserve come as no surprise, considering that the Bhutanese government already holds Bitcoin and other crypto assets. These assets are held through Druk Holding and Investments (DHI), a commercial arm of the royal government. According to Arkham Intelligence, Bhutan holds $1.12 billion worth of Bitcoin and $22 million in Ether. Smaller amounts are held in other chains like Polygon, BNB Chain, and Base.
Conclusion
The introduction of this strategic crypto reserve represents a significant step forward for Bhutan’s economic hub. As the nation continues to invest and hold substantial amounts of digital assets, it sets a precedent for other jurisdictions to consider the potential of digital assets in their strategic reserves. The move also highlights the growing global acceptance of cryptocurrencies.
