Bhutan’s Gelephu Mindfulness City to set up strategic crypto reserve

Bhutan's Gelephu Special Administrative Region (GMC), also known as Gelephu Mindfulness City, has announced plans to establish a strategic reserve that includes major cryptocurrencies such as Bitcoin (CRYPTO:BTC), Ether (CRYPTO:ETH), and BNB (CRYPTO:BNB).

The move aims to enhance the economic resilience of the region and explore new opportunities tied to Bitcoin mining.

According to the announcement, GMC intends to recognise established cryptocurrencies with large market capitalisations and deep liquidity, ensuring that they can be bought and sold with minimal price impact.

Unlike some regions that are exploring Bitcoin-only reserves, Bhutan’s GMC plans to include a range of digital assets from mature and secure blockchains.

These assets will support transaction monitoring on the blockchain, which is an important consideration for the city’s plans.

The city administration expects to discuss the strategic reserve initiative in March with senior Bhutan government officials and global industry leaders.

The announcement follows the country’s earlier release of a $100 million bond to fund the GMC project, which is designed to create an economic corridor between South Asia and Southeast Asia.

The GMC is planned to be completed over a 21-year period.

Bhutan is already holding significant crypto assets, with its royal government arm, Druk Holding and Investments (DHI), holding 11,688 BTC, valued at $1.12 billion, and 656 ETH, valued at $2.2 million, according to Arkham Intelligence.

DHI also has holdings on chains like Polygon, BNB Chain, and Base.

Bhutan’s crypto investments have been underway since at least 2019, with local Bitcoin mining operations contributing to the country’s growing crypto reserves.