Bhutan GMC to recognize Bitcoin, Ether and BNB in ​​strategic reserve

Bhutan has announced plans to recognize digital assets such as Bitcoin (BTC), Ether (ETH) and Binance Coin (BNB) as part of a strategic reserve in its newly established Special Administrative Region – Gelephu Mindfulness City (GMC). The latest move makes the region one of the first jurisdictions to officially hold digital assets in its reserve portfolio.

This initiative is expected to boost GMC's economy.

GMC accepts Bitcoin, Ether and BNB

GMC's strategic portfolio is to include digital assets with significant market capitalization and liquidity. This enables trading with less price volatility, according to the official press release.

The city prioritizes assets built on mature and secure blockchain platforms that allow for complete on-chain transaction control. Strategically positioned as a land bridge connecting the growing markets of South Asia, GMC serves a population of over two billion.

The GMC is set to host a high-profile summit in March 2025, attended by senior government officials and industry experts from around the world. The focus of the event will be on discussions on integrating digital assets into strategic repositories and creating a global advisory panel on digital assets for the GMC.

Binance founder and former CEO Changpeng ‘CZ' Zhao tweeted following the development.

“This is not just a bitcoin reserve, but a crypto one, including ETH and BNB. I believe this is the first, and it sure won't be the last. This shows that Bhutan is open minded and open to other cryptocurrencies. Hint, hint. This is a smart move by the country to attract crypto companies, investments and innovation. By the way, the Bhutanese government has been known for years for mining Bitcoin with pure (overwater) power. By default, it already has a bitcoin reserve.

CZ added that the announcement opens the door for BNB and other crypto assets to be included in other countries' strategic reserves.

Bhutan's journey to Bitcoin

The Royal Government of Bhutan has assembled a portfolio of prominent digital assets through its commercial entity Druk Holdings and Investments (DHI).

According to Arkham Intelligence data, Bhutan has 11,688 BTC, which is equivalent to 1.12 billion dollars, and 656 ETH, worth about 2.2 million dollars, with smaller chains such as Polygon, BNB Chain and Base. Instead of buying Bitcoin through owned assets like some countries, Bhutan relies on sustainable mining powered by hydroelectricity.

Mining operations began in April 2019 when Bitcoin was trading at around $5,000. In the year By 2023, these reserves will account for 26.9% of Bhutan's GDP, according to World Bank estimates.

The Royal Government of Bhutan has made a series of Bitcoin transfers over the past year.