Gelephu Mindfulness City (GMC), a newly established Special Administration Region (SAR) in Bhutan, has announced its decision to include digital assets such as Bitcoin (BTC), Ether (ETH), and Binance Coin (BNB) as part of its strategic reserves. This move positions GMC as one of the first jurisdictions globally to officially recognize digital assets in its reserves, marking a significant step in the region’s embrace of blockchain technology and cryptocurrency.‍

A New Approach to Economic Resilience

The decision to incorporate digital assets into GMC's strategic reserves aims to enhance the region’s economic resilience. GMC’s officials stated that the digital assets chosen for the reserves would be those with substantial market capitalizations and deep liquidity. This ensures that these assets can be easily traded with minimal price impact, a crucial factor for managing large reserves.

The SAR plans to focus on assets issued on secure and mature blockchains, which provide the ability to monitor and verify on-chain transactions. The inclusion of Bitcoin, Ether, and BNB is aligned with this criterion, given their established market presence and the security of the blockchains supporting them.‍

Promoting Blockchain Technology

Gelephu Mindfulness City, strategically located at the crossroads of South Asia’s rapidly growing economies, focuses on innovation, particularly the adoption of blockchain technology. This announcement follows the enactment of GMC Law No. 1 of 2024, or the ‘Application of Laws Act 2024,’ which laid the groundwork for regulating digital asset-based financial services in the SAR.

The law, announced on December 26, 2024, provides a legal framework for businesses involved in digital assets, offering a structured environment that fosters growth while ensuring security and regulatory compliance. GMC’s focus on blockchain technology, combined with its economic positioning, is expected to create new opportunities in the region’s financial sector.‍

The Road Ahead

Looking to the future, GMC plans to host a high-level meeting in March 2025 in Bhutan, bringing together senior government officials and industry leaders from around the world. The meeting will focus on the adoption of digital assets as part of a jurisdiction’s strategic reserves and the creation of an international advisory panel on digital assets.