Bhutan’s economic center to develop a strategic crypto reserve

A new economic hub in Bhutan plans to develop a strategic cryptocurrency reserve that includes major crypto assets including Bitcoin and Ether.

In an announcement on January 8, Bhutan's Special Administrative Region (SAR), also known as Gelephu Mindfulness City (GMC), revealed plans to recognize digital assets such as Bitcoin (BTC), Ether (ETH) and BNB (BNB) as part of an entity. His strategic reserves.

The inclusion of digital assets in GMC's strategic reserves aims to increase the resilience of the power economy and provide new opportunities from participation in Bitcoin mining.

The announcement stated that the city government expects to discuss the crypto strategic backup plan with senior Bhutanese government officials and international industry leaders in March.

It is not a Bitcoin-only strategic reserve

Unlike other international jurisdictions that examine Bitcoin-only strategic reserves, Bhutan's GMC seeks to reserve several established cryptocurrencies as potential crypt strategic reserves.

“GMC aims to ensure that digital assets with large market capitalization and deep liquidity can be easily bought and sold with minimal price impact,” management said.

GMC also wants to identify digital assets dedicated to “more mature and reliable blockchains that support the tracking of onchain transactions”.

GMC will take 21 years to complete

The proposal comes soon after Bhutan announced a $100 million bond to start construction of the GMC project in November 2024.

King Jigme Kesar Namgyel Wangchuck said the project is envisioned as an economic corridor connecting South Asia with Southeast Asia and has executive autonomy and legal independence.

GMC will be built in phases and is expected to be completed in 21 years, officials said.

Bhutan already holds $1.1 billion in BTC

The GMC Crypto Reserve announcement comes as the Bhutanese government holds bitcoin and other crypto assets through Druk Holdings and Investments (DHI), the royal government's business arm.

According to Arkham Intelligence, Bhutan holds 11,688 BTC ($1.12 billion) and 656 ETH ($2.2 million). Druck also holds a small stake in chains such as Polygon, BNB Chain, and Base.

According to Forbes, Bhutan has invested in Bitcoin since at least 2019.

Partnering with major crypto mining companies like Bitdeer, DHI is also known as a client of troubled crypto lenders BlockFi and Celsius, reportedly investing millions of dollars in digital assets.

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