Bhutan’s Gelephu Mindfulness City, also known as the world’s first mindfulness city, is looking to add Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB) to its strategic reserves, according to an announcement published on December 8.
GMC is positioning itself as a hub for digital assets and blockchain technology.
The motive behind the integration is to enhance the region’s economic resilience, and also build upon Bhutan’s existing Bitcoin mining activity. As noted in the press release, the city’s officials target digital assets with large market caps and deep liquidity to ensure they can be traded with minimal price impact.
GMC also intends to focus on assets built on well-established, safe, and transparent blockchains that facilitate effective monitoring of on-chain transactions.
Crypto Reserve Assets
The announcement comes after Application of Laws Act 2024, which established a legal and regulatory framework for businesses offering financial services involving digital assets, enacted last month.
The new law, along with the inclusion of digital assets in strategic reserves, is aimed at creating a regulated yet technologically advanced digital asset ecosystem.
GMC will host a meeting with government officials and industry leaders in March this year. The gathering will focus on two areas, including the implications of recognizing digital assets within strategic reserves and establishing an international advisory panel on digital assets for the city.
Strategically located to serve the South Asian market, Gelephu Mindfulness City seeks to stimulate economic growth and enhance regional connectivity with mindfulness being a fundamental aspect of daily living.
The city focuses on innovation and new technologies, especially blockchain technology, as a key part of its economic development.
Bhutan, despite its size, has become a major player in the cryptocurrency sector. The country has conducted mining operations since around 2019, with the state-owned Druk Holding & Investments (DHI) leading these efforts.
Unlike El Salvador which mines Bitcoin using volcanoes, Bhutan is a pioneer in using hydropower for Bitcoin mining. The country’s abundant hydropower resources largely power its mining operations. The approach enables Bhutan to mine Bitcoin efficiently at low cost, while maintaining a focus on eco-friendliness.
Reports indicate that Bhutan generates between 55 to 75 BTC weekly, translating to millions of dollars in revenue. As of late 2024, Bhutan’s Bitcoin holdings were valued at approximately $780 million, representing about 35% of its GDP.
Bhutan has also occasionally sold its Bitcoin. The latest sale was made last December when an address knowingly owned by the government transferred 406 BTC to QCP Capital, Arkham Intelligence data shows.
Currently, Bhutan holds 11.688 worth around $1.1 billion, being among the world’s leading Bitcoin holders. Apart from BTC, the country also owns numerous cryptocurrencies such as ETH, APU, and MATIC.
The government has inked a deal with Bitdeer, a known cryptocurrency miner, to enhance its mining capacity. Plans are reportedly underway to expand this capacity from 100 megawatts to 600 megawatts by mid-2025. The move is part of Bhutan’s ongoing strategy to diversify its economy and reduce reliance on tourism and agriculture.
A Global Trend
Countries around the world have increasingly considered adopting Bitcoin, as well as other large-cap cryptocurrencies, as part of their respective reserve strategy. Galaxy Research predicts that five nation states will adopt Bitcoin in 2025.
The trend is fueled by the world’s economic powerhouse like the US which many anticipate will soon establish a national Bitcoin stockpile under the incoming Trump administration.
According to Fidelity Digital Asset, the inclusion of Bitcoin in national strategic reserves by nation-states, central banks, and government treasuries in 2025 will considerably stimulate the cryptocurrency market.
Analysts anticipate that successful models from Bhutan and El Salvador will inspire other countries to explore cryptocurrency for economic benefits. The approach is expected to address risks related to inflation and currency devaluation.
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