Bhutan has authorized Gelephu Mindfulness City to set up its own central bank, with powers that include investing in digital assets. The decree sets no Bitcoin target or token allocation. It also leaves unclear how the new institution’s powers will fit with Bhutan’s national government and existing central bank.
- The Gelephu Financial Services Office is becoming the autonomous Gelephu Central Bank.
- Its stated mandate covers monetary policy, reserve management and financial stability.
- GMC named Bitcoin, Ether and BNB as intended strategic reserves in January 2025, but disclosed no allocations.
- Bhutan pledged up to 10, 000 BTC for GMC’s development. Implementation and custody details remain private.
A central bank for Gelephu Mindfulness City
Bhutan’s public broadcaster, BBS, reported that King Jigme Khesar Namgyel Wangchuck signed a Royal Decree turning the Gelephu Financial Services Office (GFSO) into the autonomous Gelephu Central Bank. GMC announced the royal approval on Nov. 2, without specifying the year.
The new institution will serve Gelephu Mindfulness City (GMC), a special administrative region in southern Bhutan. It is not replacing Bhutan’s national central bank. Public information so far does not explain the legal relationship between the two institutions or how they will divide responsibilities. Authorizing the bank also does not mean it has begun exercising every power in its mandate.
The Gelephu Central Bank’s stated responsibilities include supervising financial institutions, setting monetary policy, managing foreign reserves, supporting financial stability, overseeing payment and settlement systems, providing liquidity when needed, and developing money and capital markets.
The decree also allows investment in digital assets and cryptocurrencies. It does not require a Bitcoin purchase, set an allocation for any token or spell out a reserve strategy. The available details do not say whether this authority covers the bank’s own reserves, GMC’s wider treasury, or both.
Established by Royal Charter in February 2024, GMC covers more than 4, 046 square kilometers in southern Bhutan, bordering India’s Assam state. Its official website describes its governance framework as “One Country, Two Systems” and says the region has executive and legislative powers and an independent judiciary. That description alone does not explain how monetary authority, accountability or oversight will work in practice.
Reserve plans predate the decree
GMC’s interest in digital assets predates the central-bank transition. In January 2025, it named Bitcoin, Ether and BNB as assets it intended to recognize as strategic reserves. GMC said its criteria included large market capitalization, sufficient liquidity, mature and secure blockchains, and the ability to monitor on-chain transactions.
Those plans do not amount to a disclosed portfolio. GMC has not set allocations among the named assets or announced a purchase amount under the new mandate.
Bhutan has also announced a Bitcoin Development Pledge of up to 10, 000 BTC to support GMC’s long-term development. The stated goals include creating jobs, building technical skills and supporting economic activity. The plan includes continued mining, using Bitcoin for citizens’ benefit and partnering with domestic and international organizations.
The pledge does not show that the full amount has been transferred to GMC, who owns or holds any Bitcoin that has been transferred, or how it is custodied. Bhutan’s hydroelectric-powered mining operations are described as a source of Bitcoin for GMC’s reserve and development plans. Mining may explain how some BTC was obtained, but it does not eliminate price volatility, custody risks or the need for clear governance.
GMC says it is evaluating ways to manage its assets, including collateralization, possible yield strategies and long-term holding arrangements. Collateralization means pledging an asset to secure a loan or other obligation. Yield strategies seek returns, but can bring counterparty, liquidity and market risks. GMC has named capital preservation, oversight and transparency as guiding principles, but has not outlined specific strategies or safeguards.
3iQ’s mandate and the missing details
GMC appointed Canadian digital-asset manager 3iQ to oversee a dedicated mandate backed by an undisclosed portion of its Bitcoin treasury. The amount assigned to the mandate remains undisclosed.
“Our obligation is to protect the assets and help accumulate more Bitcoin for deployment into the project and the development of GMC.”
3iQ chief strategy officer Matteo Dante Perruccio described the firm’s responsibilities in an interview published on Aug. 6. The interview year was not specified. Under the agreement, 3iQ committed to establishing a long-term presence in Gelephu, investing in Bhutanese talent and transferring investment-management knowledge.
The mandate makes the unanswered questions practical, not just technical. How much Bitcoin is being managed? What limits govern the strategy? Who oversees performance and risk? No public details so far answer those questions.
Licensing, staffing and a possible digital currency
GFSO guidance brings traditional financial services and virtual-asset activities under the Financial Services Act 2025 and its supporting rulebooks. Firms must obtain a financial services license before conducting regulated activities in GMC.
The GFSO’s public directory lists custody permissions for Matrix Gelephu, DK and Ceffu Digital. BTSE Exchange is authorized to run a multilateral trading facility, a regulated venue that brings multiple buyers and sellers together, and to provide custody.
Recruitment for the central-bank transition covers more than 50 positions, including roles in virtual-asset supervision, anti-money laundering, banking operations, technology, regulatory policy and macroeconomics. The hiring drive reflects the scale of the task. A legal mandate is only a starting point. Effective supervision also needs staff, systems and enforceable controls.
GMC may introduce its own currency, including a digital version, with the King’s concurrence. That is a possibility, not an announced launch. A central bank digital currency (CBDC) is a digital form of official money issued by a central bank. It is not simply another cryptocurrency. GMC has shared no design or timeline for a currency of its own.
Key questions and answers
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Does the decree require the Gelephu Central Bank to buy Bitcoin?
No. It permits investment in digital assets but sets neither a Bitcoin purchase amount nor a fixed token allocation.
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Which assets did GMC identify for strategic reserves?
In January 2025, GMC named Bitcoin, Ether and BNB as assets it intended to recognize as strategic reserves. It disclosed no allocations and has not confirmed purchases under the central-bank mandate.
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Has Bhutan transferred 10, 000 BTC to GMC?
Bhutan pledged up to 10, 000 BTC for GMC’s development, but the pledge does not establish that the full amount, or any specific amount, has been transferred. Ownership and custody details have not been disclosed.
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How much Bitcoin will 3iQ manage?
The mandate is backed by an undisclosed portion of GMC’s Bitcoin treasury. No amount has been provided.
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How will GMC’s central bank relate to Bhutan’s national government and central bank?
GMC describes its governance as “One Country, Two Systems, ” but available details do not explain how monetary responsibilities, oversight or accountability will be divided between the Gelephu Central Bank and Bhutan’s national institutions.
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What safeguards will govern crypto investments and yield strategies?
GMC has cited capital preservation, oversight and transparency as principles, but has not published specific investment limits, risk controls or details of any yield strategy.
