Bhutan’s new economic hub adds cryptocurrencies to national reserves

Main takeaways:

• Bhutan is building an economic hub in Gelephu that will contain major cryptocurrencies such as Bitcoin and Ether as part of its national strategic reserves.
• Unlike other countries that focus solely on Bitcoin, Bhutan aims to diversify with several highly liquid cryptocurrencies built on secure blockchains.
• The move is part of a sustainable economic development strategy, reducing dependence on traditional sectors, leveraging clean energy, and aiming to become a global blockchain hub.

Bhutan is building a special economic zone, the Gelephu Mind City (GMC), which will integrate cryptocurrencies into its strategic reserves.

Gelephu Mental City: A bold move

GMC is more than just a city; It is a Special Administrative Region (SAR) with legal and financial autonomy. The project aims to create an economic corridor linking South and Southeast Asia, attracting blockchain and financial services companies.

Crypto Reserves: More than just Bitcoin

Unlike other countries, the GMC will not focus solely on Bitcoin. Official announcements It reveals plans to include high-cap and highly liquid digital assets such as Bitcoin, Ether and BNB in ​​its reserves. Selection criteria also include security and the ability to monitor transactions on the blockchain.

GMC Reserve Advertisement

Comparison of potential cryptocurrencies for GMC reserves:

Diversifying reserves helps GMC reduce risks and take advantage of the potential of different cryptocurrencies.

Solid foundation of Bitcoin mining

This is not a surprising move. Bhutan has been quietly involved in the cryptocurrency space since 2019 through Druk Holding and Investments (DHI), a government-owned company. By taking advantage of abundant hydroelectric power, Bhutan has become one of the most efficient Bitcoin miners, earning millions weekly. According to Arkham Intelligence, Bhutan holds more than 11,688 bitcoins, worth about $1.1 billion, along with smaller amounts of other cryptocurrencies.

Bhutan owns more than 11,688 bitcoins, worth about $1.1 billion. Source: Arkham Intelligence

For example, Forbes reported that DHI has partnered with major cryptocurrency mining companies like Bitdeer and invested millions in cryptocurrency lending platforms like BlockFi and Celsius. This reflects Bhutan’s serious commitment to tap into the cryptocurrency market.

More news: Why Japan is not ready to include Bitcoin in its national reserves

Economic goals and future vision

The decision to hold cryptocurrency is part of Bhutan’s long-term strategy to:

• Enhancing economic resilience: Bhutan’s economy relies heavily on hydropower and tourism, both of which are vulnerable to seasonal and external factors. Cryptocurrencies offer a new, less traditional revenue stream.
• Diversifying revenue sources: Besides electricity exports and tourism, Bhutan is exploring blockchain technology to boost new industries.
• Become a blockchain hub: Through its green energy infrastructure and open legal policies, the GMC aims to attract blockchain companies and global investors.

The GMC also plans to host a summit in March 2025 to discuss the recognition of cryptocurrencies in strategic reserves and the establishment of an international advisory board for digital assets.