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- GMC aims to accumulate highly capitalized Bitcoin and other cryptocurrencies and manage reserves through smart trading.
- Bhutan’s interest in cryptocurrencies extends to Bitcoin mining and developing legal frameworks for crypto-based financial services.
Bhutan’s newly created Gelephu Mindfulness City (GMC), a Special Administrative Region, will include Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB), among others, in its strategic reserves. This announcement, made on January 8, reflects the region’s determination to utilize digital assets as part of its general economic policy.
Bhutan’s GMC Confirms Bitcoin, Crypto Strategic Reserve
In a formal statement, GMC cited its strategic location and explained: “Located on the land bridge connecting the rapidly-growing economies of South Asia, GMC is uniquely positioned to serve the more than two billion people in the region.” It added blockchain technology and digital innovation, which are at the center of its economic priorities.
For its part, GMC plans to accumulate the most highly capitalized and liquidly traded cryptocurrencies. Besides that, it will consider other cryptocurrencies that are built on a secure blockchain that will monitor each transaction on the blockchain on-chain. Similarly, SAR also aims to manage its crypto reserves through smart buying and selling without market impact.
This will make GMC one of the first jurisdictions in the world to incorporate digital assets into its reserves. The SAR will focus its reserves on major digital currencies like Bitcoin (BTC), Ethereum (ETH), and even Binance Coin (BNB) with the intention to further expand to include other large cryptocurrencies.
This will be part of a strategic move towards enhancing economic resilience while also supporting blockchain adoption with the U.S. also mulling a similar move. Moreover, there have been reports suggesting that GMC has already started considering different crypto assets for its reserves. The SAR is to explore the stability and security of different blockchains before making further acquisitions.
This move comes following Bhutan’s increasing interest in Bitcoin mining, suggesting a pro-crypto approach, per the CNF report. The government has recently been active in cryptocurrencies and has been selling substantial BTC amounts whenever its price has increased above $100,000. According to data from Arkham Intelligence, the Bhutan government owns a whopping $1.11 billion BTC, per the CNF report.
Industry Opinion & Future Plan
The Bitcoin and crypto community is interested in Bhutan’s rising engagement with digital assets. The government is reportedly working to develop a legal framework to support businesses that offer financial services concerning cryptocurrencies.
In addition to its reserve strategy, GMC will hold a high-level meeting with world leaders to discuss the role of cryptocurrencies in strategic reserves. It will also set up an international advisory panel to guide its approach to digital asset adoption.
Binance co-founders Changpeng “CZ” Zhao and Yi He welcomed the news. The BNB Chain described GMC’s initiative as a “major milestone for blockchain adoption.” This announcement also stirred a minor rally in Bitcoin, Ethereum, and BNB, which had dropped significantly over the past few days due to liquidations in the market, reported CNF.