The country once introduced the concept of Gross National Happiness (GNH) and it now appears intent on establishing a digital asset hub in the High Himalayas. 

Bhutan, a landlocked constitutional monarchy of Bhutan east of Nepal’s capital, Kathmandu, and south of Tibet’s Llasa, is always good for the occasional surprise.

It introduced the philosophy of Gross National Happiness in the 1970s as a way of measuring progress and development, with KE Adventure, a travel blog, maintaining it is the only country in the world that has officially ever implemented it.

Carbon Negative

But it also has a few other quirks and eccentricities, as the blog indicates. It was entirely isolated from the world until 1974, the capital has no traffic lights, and it is one of three carbon-negative countries globally.

Moreover, its inhabitants apparently still believe in the Yeti, and they must wear the national dress when visiting government offices and at formal events.

Mindfulness and Mining

Now, it is trying to take things a step further, albeit in an entirely new direction, according to a media release sent out earlier this week.

The country has decided to create a new special administrative region called Gelephu Mindfulness City that will duly recognize Bitcoin and other digital assets as «part of its strategic reserves» - probably the first time in history that the two somewhat disparate concepts have been lumped together.

Official Recognition

The newly dubbed GMC SAR will be in the southern plains of Bhutan and will focus its endeavors around the previously mentioned mindfulness, as well as sustainability and innovation.

On a more concrete basis, it will recognize Bitcoin, Ether, and BNB, formerly Binance Coin, saying the intent is to recognize digital assets with large market capitalizations and deep liquidity.

Enhancing Resilience

Moreover, it says it will be one of the first jurisdictions that does so, a step that it says will «enhance its economic resilience» while representing an evolution in the country’s involvement in bitcoin mining.

«Located on the land bridge connecting the rapidly-growing economies of South Asia, GMC is uniquely positioned to serve the more than two billion people in the region, and one of its key economic focuses is on promoting and supporting the use of blockchain technology, in line with the SAR’s emphasis on innovation and pioneering of new technologies,» the media release indicated.

Regulatory Framework

Beyond that, it will consider recognizing other digital assets that are issued on «more mature, secure blockchains» that allow for the monitoring of so-called on-chain transactions.

To get everything off and running, a law was enacted on 26 December 2024 establishing the legal and regulatory framework for companies wanting to offer financial services that involve digital assets. In addition, it will convene a high-level meeting in March in the Kingdom with industry leaders from across the world and set up an international advisory panel.

Field of Dreams

In short, it appears to be a very clear case of «if you build it they will come» while getting everyone involved to get in a round of meditation for good order.