Bhutan’s new administration region to hold BTC, ETH, BNB as part of strategic reserve

Bhutan’s newest territory is adding Bitcoin, Ethereum and Binance Coin to its reserves as part of its new economic strategy.

Bhutan’s new special administrative region, Gelephu Mindfulness City, plans to add Bitcoin (BTC), Ethereum (ETH), and Binance (BNB) to its strategic reserves, making it one of the first regions to officially incorporate digital assets into its financial strategy.

In a press release on January 8, the GMC said that the decision to include cryptocurrencies was aimed at “increasing the economic resilience of the SAR”, further adding that the move was “an evolution of the jurisdiction’s involvement in Bitcoin mining”.

The zone will focus on cryptocurrencies with “large market capitalization and deep liquidity,” allowing them to be easily bought and sold. GMC also wants these assets to be published on “more mature, secure blockchains that support tracking of on-chain transactions.”

Located in the southern plains of Bhutan, GMC is at a key point connecting the rapidly growing economies of South Asia. The move follows the recent enactment of the ‘Law Enforcement Bill 2024’, which creates a legal framework for digital asset services in the GMC.

Officials hope this will “support the growth of the digital asset ecosystem” in a well-regulated environment. The press release states that GMC plans to host a global meeting in March with government officials and industry leaders to discuss the use of digital assets in strategic reserves.

As crypto prices soar in November 2024, Bhutan holds over $1 billion worth of Bitcoin. The crypto journey of the country, which has invested millions in digital assets for years, is not new. In May 2023, Bhutan devoted 5% of its gross domestic product to Bitcoin mining and collaborated with miners to increase its stake.