Bhutan’s Gelephu Central Bank cleared to hold crypto in reserves
Bhutan’s Gelephu Mindfulness City has received royal approval for a central bank empowered to invest in cryptocurrencies alongside traditional reserve assets.
- A Royal Decree grants central banking powers to the Gelephu Financial Services Office.
- The mandate covers digital asset investments, monetary policy, and foreign reserve management.
- GMC previously announced plans for Bitcoin, Ether and BNB reserves, followed by a pledge of up to 10,000 BTC.
- The region appointed 3iQ in July to manage a mandate backed by part of its Bitcoin treasury.
Gelephu Mindfulness City listed the royal approval in a Nov. 2 announcement, while Bhutan’s public broadcaster BBS reported that King Jigme Khesar Namgyel Wangchuck signed the decree granting the financial regulator comprehensive central banking powers.
The Gelephu Financial Services Office will transition into the autonomous Gelephu Central Bank. Its responsibilities will combine supervision of financial institutions with monetary policy, management of foreign reserves, and financial stability within the special administrative region.
The authorization covers investment in digital assets and cryptocurrencies. The reported mandate does not specify a Bitcoin purchase amount or a fixed allocation to any particular token.
Gelephu Central Bank receives reserve and currency powers
Beyond reserve management, the decree authorizes payment and settlement systems, liquidity support when necessary, and development of money and capital markets, according to BBS’s account of the news release.
It provides a pathway for GMC to introduce its own currency, including a digital version, subject to the King’s concurrence. The announcement therefore covers several central banking functions alongside permission to invest in crypto.
GMC occupies more than 4,046 square kilometers in southern Bhutan, bordering India’s Assam state. Its official website describes the region as operating under a “One Country, Two Systems” framework, with executive and legislative powers and an independent judiciary separate from Bhutan’s national government.
Established by Royal Charter in February 2024, the region is developing finance and digital assets among its priority industries. Its financial regulator already oversees traditional financial services and virtual asset businesses.
Bitcoin reserve plans began before the decree
The region’s crypto reserve policy predates the central bank announcement. In January 2025, GMC named Bitcoin, Ether and BNB among assets it intended to recognize as strategic reserves, as crypto.news previously reported in its coverage of the initial reserve plans.
At the time, GMC said it would prioritize assets with large market capitalizations and sufficient liquidity to permit trading with limited price disruption. Its selection criteria favored mature, secure blockchains that support monitoring of on-chain transactions.
Bhutan subsequently announced a Bitcoin Development Pledge in December 2025, committing up to 10,000 BTC to support GMC’s long-term development.
The pledge connected the country’s hydroelectric-powered mining operations with plans to create jobs, develop technical skills, and support economic activity. Its stated approach included continued mining, deployment of Bitcoin for citizens’ benefit, and partnerships with domestic and international organizations.
GMC was evaluating collateralization, risk-managed yield strategies, and long-term holding arrangements under that initiative. Capital preservation, oversight and transparency were identified as governing principles for managing the assets.
The mining program gives Bhutan a different source of Bitcoin from governments whose holdings originate in criminal seizures. GMC has described its reserve as accumulated by converting surplus hydroelectric power into digital assets.
3iQ already holds a Bitcoin treasury mandate
A separate investment-management arrangement followed in July, when GMC appointed Canadian digital asset manager 3iQ to oversee a dedicated mandate backed by an undisclosed portion of its Bitcoin treasury.
Under the July treasury agreement, the company committed to establishing a long-term presence in Gelephu, investing in Bhutanese talent and transferring investment-management knowledge.
The appointment connected GMC with Nasdaq-listed Coincheck Group, which had completed the acquisition of a 99.8% beneficial interest in 3iQ in February. The agreement did not disclose the quantity of Bitcoin assigned to the manager.
In an Aug. 6 interview published by 3iQ, chief strategy officer Matteo Dante Perruccio described the company’s obligation as protecting the assets and helping to “accumulate more Bitcoin for deployment into the project and the development of GMC.”
GFSO’s published guidance places traditional finance and virtual asset activities under the same Financial Services Act 2025 and supporting rulebooks. Firms conducting regulated activities must secure a financial services license before beginning business in GMC.
The regulator’s public directory lists custody permissions for companies including Matrix Gelephu, DK and Ceffu Digital. BTSE Exchange is authorized to operate a multilateral trading facility and provide custody.
Recruitment for the central bank transition covers more than 50 positions for Bhutanese and international professionals, spanning virtual asset supervision, anti-money laundering, banking operations, technology, regulatory policy, and macroeconomics.
