Bhutan’s Gelephu Mindfulness City (GMC) is poised to make headlines in the cryptocurrency realm by establishing a strategic reserve that would include several prominent digital assets, such as Bitcoin (BTC), Ether (ETH), and BNB (BNB). This initiative aims to strengthen the economic framework of the region and enhance its resilience in a dynamic global market.
In a recent announcement issued on January 8, GMC outlined its plans for recognizing various digital currencies as part of its strategic reserves. Such a move is aimed not only at diversifying its assets but also at generating new opportunities through involvement in Bitcoin mining. This strategy differentiates GMC from other jurisdictions that are predominantly focusing on a Bitcoin-only reserve model.
- Key assets to be included in the reserve: Bitcoin (BTC), Ether (ETH), BNB (BNB)
- Focus on cryptocurrencies with large market capitalizations
- Plans for discussions with government officials and global industry leaders in March
The GMC administration emphasizes the importance of selecting cryptocurrencies that have large market capitalizations and deep liquidity. This criterion will ensure that the assets can be easily traded with minimal price fluctuations. Furthermore, the administration plans to utilize established and secure blockchains that facilitate the monitoring of on-chain transactions, adding an additional layer of accountability and security.
Expected to unfold over the next 21 years, the GMC project is ambitious and seeks to create a robust economic corridor linking South Asia to Southeast Asia. In November 2024, Bhutan announced a $100 million bond to kickstart the development of this initiative, which promises to be built in phases, ensuring comprehensive growth and integration.
Remarkably, Bhutan has already made substantial investments in cryptocurrencies. Currently, the government holds approximately 11,688 BTC valued at around $1.12 billion through its commercial arm, Druk Holding and Investments (DHI). Reports suggest that Bhutan’s investments in Bitcoin date back to at least 2019, heavily supported by local Bitcoin mining activities, which will likely play a significant role in the success of the new reserve.
With significant partnerships with crypto mining firms and loans from troubled entities, this strategic reserve could signal a new wave of digital asset acceptance in Bhutan. As the city gears up for crucial discussions in March with global leaders, the international community will be watching closely to see how Bhutan’s strategic repository of cryptocurrencies unfolds.
