Bhutan’s New Economic Hub Adds Crypto to National Reserves

Tags: bhutan, bitcoin, reserve

Key takeaways:

• Bhutan is building an economic hub in Gelephu that will hold major cryptocurrencies like Bitcoin and Ether as part of its national strategic reserves.
• Unlike other countries focusing solely on Bitcoin, Bhutan aims to diversify with various high-liquidity cryptocurrencies built on secure blockchains.
• This move is part of a sustainable economic development strategy, reducing reliance on traditional sectors, leveraging clean energy, and aiming to become a global blockchain hub.

Bhutan’s building a special economic zone, Gelephu Mindfulness City (GMC), which will incorporate cryptocurrency into its strategic reserves.

Gelephu Mindfulness City: A Bold Move

GMC is more than a city; it’s 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 companies and financial services.

Crypto Reserves: More Than Just Bitcoin

Unlike other nations, GMC won’t focus solely on Bitcoin. Official announcements reveal plans to include high-market-cap, high-liquidity digital assets like Bitcoin, Ether, and BNB in their reserves. Criteria for selection also include security and the ability to monitor transactions on the blockchain.

GMC’s reserve announcement

Comparison of potential cryptocurrencies for GMC’s reserves:

Cryptocurrency	Purpose	Advantages
Bitcoin (BTC)	Largest market cap cryptocurrency	High liquidity, widely recognized, cornerstone of the crypto market
Ether (ETH)	Leading smart contract platform	Large ecosystem, versatile applications, supports complex transactions
BNB (BNB)	Binance exchange cryptocurrency	High liquidity, supports many projects within Binance, various utilities

Diversifying the reserves helps GMC reduce risks and tap into the potential of various cryptocurrencies.

Solid Foundation from Bitcoin Mining

This isn’t a sudden move. Bhutan has been quietly involved in crypto since 2019 through Druk Holding and Investments (DHI), a government-owned company. Leveraging its abundant hydropower, Bhutan has become one of the most efficient Bitcoin miners, earning millions weekly. According to Arkham Intelligence, Bhutan holds over 11,688 BTC, worth about $1.1 billion, along with smaller amounts of other cryptocurrencies.

Bhutan holds over 11,688 BTC, worth about $1.1 billion. Source: Arkham Intelligence

For example, Forbes reports that DHI has partnered with major crypto mining firms like Bitdeer and invested millions in crypto lending platforms such as BlockFi and Celsius. This reflects Bhutan’s serious commitment to profiting from the crypto market.

Economic Goals and Future Vision

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

• Enhance economic resilience: Bhutan’s economy relies heavily on hydropower and tourism, both vulnerable to seasonal and external factors. Cryptocurrencies offer a new, less traditional revenue stream.
• Diversify revenue sources: Beyond electricity exports and tourism, Bhutan is exploring blockchain technology to foster new industries.
• Become a blockchain hub: With green energy infrastructure and open legal policies, GMC aims to attract blockchain companies and global investors.

GMC also plans to host a summit in March 2025 to discuss recognizing cryptocurrencies in strategic reserves and establish an international advisory council on digital assets.