Bhutan’s GMC to Recognize Bitcoin, Ether, and BNB in Strategic Reserve

Bhutan’s newly established Special Administration Region – Gelephu Mindfulness City (GMC) – announced plans to recognize digital assets such as Bitcoin (BTC), Ether (ETH), and Binance Coin (BNB) as part of its strategic reserves. The latest move has made the region one of the first jurisdictions to officially hold digital assets within its reserve portfolio.

The initiative is expected to boost GMC’s economy.

GMC Embraces Bitcoin, Ether, and BNB

GMC aims to incorporate digital assets characterized by significant market capitalization and liquidity to strengthen its strategic reserves. This would enable trading with minimal price volatility, according to the official press release.

The city will also prioritize assets built on mature and secure blockchain platforms that allow thorough on-chain transaction oversight. Strategically located on the land bridge connecting South Asia’s booming markets, GMC serves a population of over two billion people.

GMC is also set to organize a high-profile gathering in March 2025 which will feature top government officials and industry experts from around the world. The focus of the event will be on discussions about integrating digital assets into strategic reserves and creating an international advisory panel on digital assets for GMC.

Following the development, Binance co-founder and former CEO, Changpeng ‘CZ’ Zhao tweeted,

“It’s not just a bitcoin reserve but a crypto one, including ETH and BNB. I believe this is a first, and it sure won’t be the last. This signals that Bhutan is open-minded and open to other cryptocurrencies, too. Hint, hint. This is a smart move by the country to attract crypto companies, investments, and innovation. By the way, the Kingdom of Bhutan has been known for years for mining Bitcoins with clean (excess hydro) energy. By default, it already has a Bitcoin reserve.”

CZ also added that the announcement opens the door for BNB and other crypto assets to be included in other countries’ strategic reserves.

Bhutan’s Journey into Bitcoin

Bhutan’s royal government, through its commercial entity Druk Holding and Investments (DHI), has amassed a notable portfolio of digital assets.

Arkham Intelligence data reveals that Bhutan holds 11,688 BTC, which is equivalent to $1.12 billion, and 656 ETH, worth around $2.2 million, along with minor amounts on chains such as Polygon, BNB Chain, and Base. Rather than acquiring Bitcoin via seized assets like some countries, Bhutan has relied on sustainable mining powered by hydroelectricity.

Mining activities began in April 2019, when Bitcoin traded around $5,000. By 2023, these reserves accounted for 26.9% of Bhutan’s GDP, according to World Bank estimates.

The Royal Government of Bhutan made a series of Bitcoin transfers last year.