Royal Approval for Gelephu Central Bank to Embrace Cryptocurrency Investments in Bhutan

Introduction to Gelephu Central Bank

In a significant move towards integrating digital finance, Bhutan's Gelephu Mindfulness City has received royal sanction for the establishment of a central bank, which will have the authority to invest in cryptocurrencies in addition to managing traditional reserve assets. The announcement made on November 2 revealed that King Jigme Khesar Namgyel Wangchuck had signed a decree empowering the Gelephu Financial Services Office to transition into an autonomous central banking entity, known as the Gelephu Central Bank (GCB).

Functions and Responsibilities of GCB

This newly formed GCB will handle various critical functions, including:

• Supervision of financial institutions
• Management of foreign reserves
• Implementing monetary policies aimed at promoting financial stability in this unique administrative zone.

The decree notably permits investments in digital assets, although it does not specify any exact amounts for cryptocurrency acquisitions or allocations to specific tokens like Bitcoin.

Broader Strategy and Currency Development

In addition to reserve management, the central bank has been authorized to deal with payment and settlement systems, provide liquidity support when required, and enhance money and capital markets. The announcement indicates a broader strategy for GCB to potentially introduce its own currency, which may include a digital format, all contingent upon the approval of the King.

Gelephu Mindfulness City Overview

Gelephu Mindfulness City, an area spanning over 4,046 square kilometers in southern Bhutan bordering India's Assam state, operates under a “One Country, Two Systems” principle. This framework allows the region a level of autonomy, characterized by distinct executive and legislative powers along with an independent judiciary, separate from Bhutan’s broader national government. The region was officially established through a Royal Charter in February 2024 and is prioritizing sectors such as finance and digital assets.

Previous Initiatives and Commitments

Interestingly, Gelephu's interest in cryptocurrency is not new; earlier this year, GMC took steps to classify Bitcoin, Ether, and BNB as strategic reserves. The rationale behind this decision included a focus on assets with substantial market capitalizations and sufficient liquidity to minimize trading disruptions. Such criteria also emphasize the importance of secure, transparent blockchain technology for monitoring transactions on-chain.

In December 2025, Bhutan further committed to the digital currency sphere with a Bitcoin Development Pledge, which promised up to 10,000 BTC aimed at bolstering GMC’s long-term growth. This initiative sought to intertwine the nation’s hydropower resources with economic advancements, job creation, and technical skill development. As part of this approach, Bhutan sought to leverage its mining capabilities, converting the overproduction of hydroelectric energy into Bitcoin, setting it apart from other governments that acquire cryptocurrency through less favorable means, such as criminal seizures.

Strategic Partnerships and Future Outlook

A strategic partnership was also forged in July when GMC hired Canadian digital asset management firm 3iQ to manage a portion of its Bitcoin holdings under an undisclosed mandate. This partnership includes a commitment from 3iQ to invest in local talent and share industry knowledge, further solidifying GMC’s aspirations in the digital finance arena.

Transition and Oversight

Gelephu's Financial Services Office (GFSO) is managing the transition and oversight of the central bank, with recruitment efforts for over 50 positions across different sectors including virtual asset supervision, regulatory policy, and macroeconomics. Institutions already authorized to operate under the current framework include notable companies such as Matrix Gelephu and BTSE Exchange, which have secured licenses for regulated activities within this burgeoning financial landscape.