Gelephu Mindfulness City, Bhutan’s Special Administration Region, has announced plans to adopt digital assets, including bitcoin, ether and BNB, as part of its strategic reserves.
Once enacted, the SAR would become one of the first jurisdictions to hold cryptocurrencies officially as part of its strategic reserve. The initiative aims to enhance the SAR’s economic resilience, expanding on its existing involvement in bitcoin mining, according to a statement released on Wednesday.
The SAR is an ambitious sustainable urban development and economic innovation project in southern Bhutan, envisioned by King Jigme Khesar Namgyel Wangchuck. Spanning over 2,500 square kilometers near the India-Bhutan border, GMC claims it is uniquely positioned to serve the more than two billion people in the region with a key economic focus on promoting and supporting blockchain technology.
Without naming any other specific cryptocurrencies beyond BTC, ETH and BNB, GMC said it “intends to recognize digital assets that have large market capitalizations and deep liquidity to ensure that they can be easily bought and sold with minimal price impact.” The SAR will “look to recognise digital assets that are issued on more mature, secure blockchains that support monitoring of onchain transactions,” it added.
GMC’s strategic reserve announcement follows the enactment of its Application of Laws Act in December, which established the legal and regulatory framework for GMC companies to offer digital asset financial services.
In March, GMC will host a high-level meeting, bringing together senior government officials and industry leaders worldwide to discuss recognizing digital assets as strategic reserves.
Bhutan is already the fifth-largest known nation-state holder of bitcoin, with its 12,211 BTC ($1.2 billion) placing it only behind the United States (208,109 BTC), China (190,000 BTC), the United Kingdom (61,245 BTC) and Ukraine (46,351 BTC), according to Bitcoin Treasuries data.
However, while many countries tend to acquire their bitcoin via criminal seizures, Bhutan has been mining the foremost cryptocurrency, leveraging its abundant national hydroelectric power infrastructure to drive eco-friendly mining operations.
GMC’s plans also come amid speculation that other nation-states have begun acquiring the asset to front-run U.S. President-elect Donald Trump's campaign pledge to establish a national bitcoin stockpile.
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