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Bhutan’s newly established Gelephu Mindfulness City (GMC) has announced its plan to include digital assets such as Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) as part of its strategic reserves. This initiative positions GMC as one of the first Special Administrative Regions (SARs) to officially integrate digital currencies into its economic framework.
Bhutan Add BTC, ETH, and BNB To Strategic Reserves
Gelephu Mindfulness City, located in the heart of South Asia, is uniquely positioned to take advantage of the growing digital economy. Its decision to include digital assets in its reserves is focused on those with large market capitalizations and high liquidity. This ensures that these assets can be bought and sold easily without causing large price swings.
Bitcoin, Ethereum, and Binance Coin were selected because they are built on secure, well-established blockchains that allow for easy tracking of transactions, making them reliable choices for inclusion.
This move comes as part of the region’s ongoing involvement with blockchain technology, which includes initiatives like Bitcoin mining.
New Legal Framework for Digital Assets
This decision comes just after the introduction of GMC Law No. 1 of 2024, known as the ‘Application of Laws Act 2024’. The law sets a clear legal and regulatory framework for businesses dealing with digital assets in GMC.
This law, along with the decision to add Bitcoin, Ethereum, and BNB to the city’s reserves, strengthens the digital ecosystem in GMC. The region aims to foster a balance between technological innovation and regulation, offering a secure environment for digital assets to grow.
Bhutan’s Bitcoin Holding
Bhutan has been investing in cryptocurrency for a while, and its Bitcoin holdings have now surpassed $1 billion as the market rises. It ranks fifth in Bitcoin holdings, following the United States, China, the United Kingdom, and Ukraine.
In addition to buying Bitcoin, the country has formed partnerships with Bitcoin miners. In May 2023, Bhutan allocated 5% of its GDP to Bitcoin mining, signaling its growing commitment to the digital asset space.
What’s Next For GMC?
Looking ahead, GMC is planning an international summit in March 2025 in Bhutan. The event will gather senior government officials and industry leaders from around the world to discuss the role of digital assets in national reserves.
The summit will also focus on setting up an advisory panel to guide the city’s efforts in the digital asset space.
