In Bhutan, a fresh financial center is considering establishing a tactical reserve of significant digital currencies, such as Bitcoin and Ether, within its investment portfolio.
On January 8th, the Gelephu Special Administrative Region (SAR), also known as the Gelephu Mindfulness City (GMC), publicly unveiled a strategy to acknowledge cryptocurrencies like Bitcoin (BTC), Ether (ETH), and BNB (BNB) as components of its long-term investment portfolio.
Integrating digital assets into the GMC’s strategic holdings is intended to bolster the region’s financial robustness and present fresh prospects through participation in Bitcoin mining operations.
The statement reveals that the city authorities plan to talk about their cryptocurrency strategic reserve strategy with top Bhutanese government officials and influential figures from the worldwide crypto sector in March.
Not a Bitcoin-only strategic reserve
Rather than focusing on accumulating Bitcoins exclusively for a strategic crypto reserve, Bhutan’s GMC aims to store multiple well-established cryptocurrencies in this potential digital asset portfolio.
The GMC aims to identify digital assets that have significant market values and high trading volumes, so that these assets can be quickly purchased and sold with little effect on their prices, according to the administration.
Additionally, GMC aims to identify digital assets originating from “more robust, secure blockchains capable of tracking on-chain transactions,” they noted.
GMC will take 21 years to be completed
Following Bhutan’s recent announcement of a $100 million bond set for the commencement of the GMC project in November 2024, I am eagerly anticipating the upcoming development phase as a researcher.
According to King Jigme Khesar Namgyel Wangchuck, the project is conceptualized as a self-governing trade route connecting South Asia with Southeast Asia, boasting both economic and legal autonomy.
Officials said GMC will be built in phases and is expected to be completed in 21 years.
Bhutan already holds $1.1 billion in BTC
The statement from GMC about their crypto reserve follows news that the Bhutanese government, specifically Druk Holding and Investments (DHI), has previously acquired Bitcoin and various other cryptocurrencies as part of its investment portfolio under the royal government’s commercial arm.
Based on data from Arkham Intelligence, the tiny Himalayan nation of Bhutan is reported to possess approximately 11,688 Bitcoins valued at around $1.12 billion, along with 656 Ethereum worth roughly $2.2 million. Moreover, they also have small quantities of digital assets on networks such as Polygon, BNB Chain, and Base.
As reported by Forbes, Bhutan has been involved in Bitcoin investments since no later than 2019. A notable portion of these Bitcoins is believed to have originated from local Bitcoin mining facilities.
Working alongside prominent cryptocurrency mining companies such as Bitdeer, DHI has also earned recognition as a client of distressed crypto lending platforms BlockFi and Celsius, allegedly investing significant amounts of money in digital currencies.
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2025-01-08 14:14