Bhutan: A royal decree opens the reserves of the future central bank of Gelephu to cryptos

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This authority will exercise its functions in Gelephu Mindfulness City, a special administrative region located in the south of the kingdom. Its implementation timetable and coordination with the national central bank remain to be clarified.

King Jigme Khesar Namgyel Wangchuck has granted the Gelephu regulator an expanded mandate, according to the city's official announcement. The institution must evolve towards an autonomous central bank.

Its skills will cover monetary policy, reserve management, financial stability and supervision of establishments in the zone. It will also be able to develop payment and settlement systems, as well as provide liquidity support when necessary.

The crypto component appears explicitly in the powers announced. According to state media Bhutan Broadcasting Service, the bank will be allowed to invest in digital assets and cryptocurrencies, in addition to traditional reserve assets.

The decree also opens the possibility of a currency specific to Gelephu, including in digital form. Its introduction, however, would require the king's agreement: no immediate issue has been announced.

Gelephu Mindfulness City has a distinct administrative and legal framework, while remaining an integral part of Bhutan. Established by royal charter in February 2024, this border region of India makes finance and digital assets one of its priority sectors.

However, the announced autonomy does not allow us to conclude that there is a complete separation from the national monetary system. The Royal Monetary Authority remains the central bank of Bhutan and the issuer of ngultrum notes and coins. According to Daily Bhutan, the terms of cooperation between the two institutions on foreign exchange, payments and monetary policy have not yet been publicly explained.

The composition of reserves, the rules for storing cryptocurrencies and risk limits also remain to be established. Implementation requires specialized teams: more than fifty positions have been announced, particularly in the supervision of virtual assets, payments and the fight against money laundering.

The decree therefore gives Gelephu an institutional basis to integrate digital assets into its financial management. Slowly, but surely, Bhutan is continuing its national policy of integrating bitcoin and cryptos into the economy.

With a background in literature and languages, I like to combine rigorous analysis with a taste for ideas to decipher the major economic and (geo)political issues linked to cryptocurrencies. Since 2021, I have been writing for Journal du Coin where I focus on subjects such as Bitcoin, MNBC, the tokenization of RWA and more broadly the strategic mutations of Web3. A passionate reader, curious about the world and the power relationships that structure it, I strive to make these themes accessible to all, with particular attention to projects designed for the general public.

Machine-translated from French