Bhutan's Gelephu Central Bank Gains Authority to Hold Crypto in Reserves
A royal decree elevated Bhutan's Gelephu Financial Services Office into the Gelephu Central Bank, which may invest in digital and crypto assets alongside traditional reserves. The allocation is optional and no amount or token mix has been disclosed.
Written by CoinArticle’s AI Newsroom · from 2 cited sources. How we work
What the Decree Grants
King Jigme Khesar Namgyel Wangchuck signed a royal decree that converts the Gelephu Financial Services Office into the autonomous Gelephu Central Bank, which serves Gelephu Mindfulness City (GMC), a special administrative region in southern Bhutan. Reporting from Crypto Briefing places the signing on November 1-2, 2026, while Crypto.news cites a November 2 announcement from GMC and a report from Bhutan's public broadcaster BBS. Both sources agree the bank's powers cover monetary policy, management of foreign reserves, and supervision of financial institutions in the city.
The crypto provision is the central element. The bank is permitted, not required, to invest in digital and cryptocurrency assets as part of its reserves. Neither source reports a Bitcoin purchase amount or a fixed allocation to any token, and Crypto.news notes the mandate does not specify either.
Scope Beyond Reserves
Crypto.news reports that the decree also authorizes payment and settlement systems, liquidity support when necessary, and development of money and capital markets, details drawn from BBS's account of the release. Crypto Briefing focuses on the reserve and currency elements and does not mention these additional functions, so the wider mandate rests on the BBS-derived account.
Both outlets describe a pathway for GMC to issue its own currency, potentially in digital form. That step requires the King's concurrence, and neither source gives a timeline.
Groundwork Already in Place
The reserve authorization builds on earlier steps. GMC was established by Royal Charter in February 2024 and operates under a "One Country, Two Systems" framework, covering more than 4,046 square kilometers bordering India's Assam state, according to Crypto.news citing GMC's website. In January 2025, GMC named Bitcoin, Ether and BNB as assets it intended to recognize as strategic reserves, prioritizing high market capitalization and liquidity.
In December 2025, Bhutan announced a Bitcoin Development Pledge of up to 10,000 BTC. Crypto.news reports that the pledge ties hydroelectric-powered mining to job creation and skills development, and that GMC has described its holdings as accumulated by converting surplus hydroelectric power into digital assets. In July, GMC appointed Canadian digital asset manager 3iQ to oversee a mandate backed by an undisclosed portion of the Bitcoin treasury. Crypto.news notes that 3iQ is part of Coincheck Group, which completed the acquisition of a 99.8% beneficial interest in February. The Bitcoin amount assigned to the manager was not disclosed.
Crypto Briefing adds that GMC has licensed digital asset firms, including BTSE Bhutan for trading and custody, and is recruiting more than 50 professionals for virtual asset supervision and financial regulatory policy.
Open Questions
The sources differ in emphasis on how the pledged Bitcoin relates to the new bank. Crypto Briefing presents the 10,000 BTC pledge as a pool the central bank could draw on if it uses its crypto authority. Crypto.news frames the pledge and the 3iQ arrangement as separate initiatives under GMC's development program. The reporting does not establish whether the central bank will hold any of the pledged assets.
The actual size of any crypto holdings remains unknown, and no timeline has been given for a digital currency. Crypto Briefing lists three near-term indicators: whether GCB discloses digital asset holdings, whether royal approval for a currency materializes, and whether more licensed firms enter the zone.
Why It Matters
For Traders
No allocation size or token mix has been disclosed, so any near-term price effect from the reserve authority is speculative until the central bank reports actual holdings.
For Investors
A sovereign-backed central bank formally permitted to hold crypto reserves strengthens the case for digital assets as a reserve category, though the allocation remains optional.
For Builders
Licensed custody and trading operators like BTSE Bhutan, plus a supervisory regime, offer a template for building compliant products in a jurisdiction that is actively recruiting virtual asset expertise.
This article is for information only and is not financial advice. Read the full disclaimer.
