In the early hours of today, Bhutan’s Gelephu Mindfulness City revealed plans to incorporate three of the largest cryptocurrencies – Bitcoin, Ethereum, and Binance Coin – into its strategic reserves. This decision positions GMC among the world’s first jurisdictions to officially hold digital assets as part of their financial strategy.
If this acquisition strategy goes as planned, Bhutan is set to mark a significant milestone in the evolution of cryptocurrency adoption.
GMC Strategic Vision and Implementation
The newly established Special Administrative Region aims to focus on cryptocurrencies with large market capitalizations and deep liquidity. The reason behind this is to ensure minimal price impact during trading activities.
This approach builds upon Bhutan’s existing success in cryptocurrency, with the nation currently holding over $1.2 billion in Bitcoin at the time of writing. The country’s sophisticated management strategy includes strategic sales, as demonstrated by recent transactions totaling nearly $100 million when Bitcoin prices peaked.
Bhutan Total BTC Holdings: Bitbo.io
The recently enacted “Application of Laws Act 2024,” which sets out a detailed legal framework for digital asset services, provides some well-needed support for GMC’s plan.
This framework seems to have started recording some success in capturing institutional attention. Matrixport is one of the first major companies to reveal its intention to apply for a Financial Services Permission License in the country.
Building on Past Success
Bhutan is in no way a stranger to how the cryptocurrency market works. The country’s journey into crypto started seven years ago when Bitcoin was valued under $5,000, with the country enjoying an ROI close to twenty-fold now.
In other news, Bhutan plans to expand its mining capacity from 100 megawatts to 600 megawatts by mid-2025 in partnership with Bitdeer Technologies. With this plan, the country stays true to its goal of becoming a household name in global cryptocurrency mining.
It does not end there, as it believes its commitment to environmental sustainability can go hand in hand with mining capacity expansion.
Future Developments and Global Impact
Bhutan’s Gelephu Mindfulness City (GMC) plans to host a landmark summit in March 2025, bringing together government officials and industry leaders to discuss the integration of digital assets into strategic reserves. The event should also give rise to an International Digital Asset Advisory Committee to strengthen GMC’s position as a global hub for blockchain innovation.
On the other hand, Fidelity Digital Assets expects that Bhutan’s approach will inspire other nations to add Bitcoin to their strategic reserves in the near future. In addition, positive reactions from industry leaders like Binance co-founder Changpeng “CZ” Zhao hint at a shift toward national cryptocurrency adoption.
It is important to note that this initiative perfectly aligns with Bhutan’s economic philosophy, which places Gross National Happiness over traditional GDP metrics. By leveraging blockchain technology, GMC aims to improve its economic resilience while staying committed to sustainable development.
Through these well-thought-out moves, Bhutan shows it can adapt to global market trends while maintaining its rich cultural values. The success of this initiative could serve as a blueprint for other nations considering similar digital asset strategies in their national planning.
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