A newly designated Special Administrative Region in Bhutan announced plans on Wednesday to formally adopt digital assets, including Bitcoin, Ethereum, and Binance’s BNB token, as part of its strategic reserves.
Known as the Gelephu Mindfulness City, the region is attempting to establish an urban environment in the southern plains of Bhutan centered around “mindfulness, sustainability, and innovation,” according to a statement on Wednesday.
GMC’s initiative seeks to institutionalize the inclusion of digital assets at a regional level. The move builds on Bhutan’s growing role in crypto, where the government already holds significant Bitcoin reserves.
Since 2019, Bhutan’s state investment arm, Druk Holding & Investments (DHI), has mined over 13,000 Bitcoin, valued at approximately $750 million.
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The reserves place Bhutan among the largest governmental Bitcoin holders globally, surpassing El Salvador, which adopted Bitcoin as legal tender in 2021 and holds 5,995 BTC.
It follows a recent financial services giant Fidelity report, which predicts more countries piling in to establish strategic Bitcoin reserves this year in a bid to hedge against “debilitating inflation, currency debasement, and increasingly crushing financial deficits.”
The SAR plans to prioritize assets with high market capitalization, deep liquidity, and mature blockchain infrastructure to ensure resilience and transparency, per the statement.
SARs are a distinct type of administrative division typically granted a higher degree of autonomy than other regions within a country.
They are often established to accommodate the unique political, economic, or cultural characteristics of a region while still maintaining its connection to the central government.
The initiative complements Bhutan's broader strategy to position the city as a hub for blockchain innovation in South Asia.
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It also builds on the nation’s enactment of the "Application of Laws Act 2024," which established a regulatory framework for digital asset services.
GMC officials said the SAR would host a global summit in March to discuss integrating digital assets into strategic reserves and establish an international advisory panel.
It comes as other jurisdictions explore similar strategies. In the U.S., President-elect Donald Trump has proposed creating a strategic Bitcoin reserve to expand the government’s crypto holdings.
El Salvador and the Central African Republic have also taken steps to deepen their integration of Bitcoin into national financial systems, leveraging the crypto for both economic growth and financial independence.
