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Bhutan’s Gelephu Mindfulness City (GMC), a special administrative region, announced the inclusion of Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) in its strategic reserves. This decision positions GMC among the first jurisdictions globally to officially hold digital assets as part of its reserve strategy.
Crypto as a Catalyst for Economic Growth
GMC's decision reflects its vision to become the “Hong Kong of South Asia.” Located strategically near South Asia’s rapidly growing economies, GMC aims to serve over two billion people in the region.
The inclusion of BTC, ETH and BNB is part of a broader strategy to adopt mature digital assets with high market capitalization and deep liquidity. These assets are chosen for their stability and the ability to support on-chain transaction monitoring, ensuring transparency and security.
GMC’s announcement follows the enactment of its “Application of Laws Act 2024,” which provides a legal framework for companies offering financial services involving digital assets. This regulatory clarity is expected to attract businesses and boost blockchain adoption within the region.
Strategic Partnerships and Vision
GMC’s development has drawn international attention, including a partnership with Bjarke Ingels Group (BIG), a Danish architecture and design firm. BIG is opening an office in Bhutan to work on GMC’s development and foster design talent within the Himalayan kingdom.
The city’s focus on digital assets aligns with Bhutan’s broader economic transformation. GMC plans to host a high-level meeting in March 2025, bringing together government officials and industry leaders to discuss integrating digital assets into strategic reserves. This event will also establish an international advisory panel on digital assets for the region.
Bhutan’s Lead in Sustainable Crypto Adoption
Bhutan’s crypto journey has set it apart from neighboring countries like India, which maintain a cautious stance on digital assets. Bhutan’s $1 billion Bitcoin holdings dwarf El Salvador’s $335 million as of Nov. 12, despite the latter’s population being nearly eight times larger.
The nation’s success is rooted in its unique ability to power large-scale Bitcoin mining with hydropower. Bhutan’s hydropower accounts for 30% of its GDP, with a capacity to generate 23,760 MW of electricity.