During the Binance Crypto-Powered Tour, Cointelegraph visited Thimphu and Paro to assess how much traction crypto payments have gained. Just a few months after launch, locals and tourists alike are using digital assets for everything from hotel bookings to street food.

From Temples to Tokens: A Nation Transforms

On May 7, Binance Pay and DK Bank announced a partnership allowing users to pay with Bitcoin, BNB, USDT, and other assets for flights, hotels, visas, and even snacks.

DK Bank president Ugy Gelephuin stated that nearly 1,000 merchants have already signed up to accept crypto. Local tour guide Kuenley Dorjee told Cointelegraph that the technology is still new to many, but enthusiasm is growing: “It’s easier to use and the fees are better.”

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Bhutan’s progressive stance stems largely from its monarch, King Jigme Khesar Namgyel Wangchuck—nicknamed the “Dragon King.” Under his rule, the country has implemented hydro-powered Bitcoin mining since 2019, accumulating over 12,000 BTC when prices were around $5,000.

In January, Bhutan‘s Gelephu region unveiled plans to develop a strategic crypto reserve, showing long-term commitment to digital assets.

Internet Challenges Persist, But Hope Is on the Horizon

Despite excitement, the country faces ongoing internet instability. Cointelegraph encountered inconsistent Wi-Fi in Paro and Thimphu, with Reddit users describing connections as “horrendously slow.”

The recent arrival of Starlink, however, could be a game-changer. Officially launched on February 17, Starlink promises speeds between 100–200 Mbps—enough to support real-time crypto transactions.

DK Bank’s Gelephuin remains optimistic: “We’re not quite there yet, but we’re on the right track.”

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Shawn Young, chief analyst at MEXC Research, attributes this cautious stance to volatility, regulatory uncertainty, and structural conservatism. “Central banks prioritize stability and liquidity — and Bitcoin, despite its resilience, still doesn’t consistently offer these qualities,” he said.

Shift Away from Traditional Bonds

The survey also highlights a growing appetite for diversification. While gold remains the dominant reserve asset, central banks are increasingly eyeing corporate bonds and public equities for the next 10 years. About 16% expect to reduce their government bond holdings, and 13% plan to cut cash reserves.

Meanwhile, digital assets are slowly gaining ground. Around 10% of participants said they might increase exposure to digital assets, though the focus is primarily on tokenized securities rather than mainstream cryptocurrencies.

Governments Are Holding Bitcoin?

According to Chainalysis, some governments have started to accumulate significant amounts of cryptocurrency, mainly from law enforcement seizures. Unlike in the past, these assets are now being strategically held instead of immediately liquidated. The United States is among the countries shifting toward this approach.

In China, approximately $50 billion worth of seized crypto is held, although the lack of a centralized management policy raises concerns about transparency and long-term value. Analysts believe that a unified national strategy could reshape China’s stance on digital assets.

Early Bitcoin Adopters: El Salvador and Bhutan

El Salvador made global headlines in 2021 when it became the first country to adopt Bitcoin as legal tender. While the move attracted investment and attention, it also triggered political friction, particularly with the IMF, leading the country to soften some of its policies. Young notes that El Salvador’s goal was to attract investment, tourism, and tech infrastructure.

Shifting Sentiment in Europe

In a bold departure from traditional European monetary policy, Czech National Bank Governor Aleš Michl proposed allocating 5% of the country’s reserves to Bitcoin. This view contrasts with the European Central Bank, where President Christine Lagarde continues to reject Bitcoin as a viable reserve asset due to concerns over liquidity, security, and AML compliance.

Switzerland presents a unique case: a 2024 People’s Initiative aims to amend the constitution, requiring the Swiss National Bank to hold Bitcoin alongside gold. If successful, it could lead to the world’s first national referendum on Bitcoin as a reserve asset — showcasing rising public and institutional acceptance of digital assets in a country known for financial privacy.

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On Wednesday, Bhutan’s Gelephu Mindfulness City (GMC) announced its decision to expand its crypto adoption plan. The country’s new special administration region will hold Bitcoin (BTC), Ethereum (ETH), Binance’s BNB, and other digital assets in its strategic reserves.

Bhutan to Include Bitcoin, Ethereum, and BNB in Strategic Reserves

Bhutan’s Gelephu Mindfulness City (GMC) has announced plans to hold BTC, ETH, BNB, and other digital assets in its strategic reserves, according to an official statement released on January 8.

“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. One of its key economic focuses is promoting and supporting the use of blockchain technology, in line with the Special Administration Region’s (SAR) emphasis on innovation and pioneering new technologies.”

According to details, Bhutan’s new Special Administration Region plans to recognize digital assets such as Bitcoin (BTC), Ether (ETH), and BNB as part of its strategic reserves. This decision makes GMC one of the first jurisdictions to hold digital assets in strategic reserves.

Gelephu Mindfulness City (GMC) will purchase only digital assets with large market capitalization and deep liquidity. Additionally, GMC will review other digital assets issued on secure and stable blockchains that support on-chain transaction monitoring.

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Bhutan Focuses on Bitcoin Mining

This decision stands out as a significant development in Bhutan’s efforts to enhance its economic resilience and strengthen its participation in Bitcoin mining. The Special Administration Region (SAR) has confirmed plans to buy and sell cryptocurrencies in reserves with minimal impact on market prices.

Another notable development is that the Bhutanese government sold millions of dollars worth of Bitcoin in the last two months, after Bitcoin’s price surpassed $100K. According to Arkham Intelligence, the government still holds $1.11 billion worth of BTC.

Reactions from the Crypto Community

The crypto community has responded positively to Bhutan’s intention to further immerse itself in crypto. Additionally, the country is establishing a legal and regulatory framework for companies seeking to offer financial services involving digital assets.

Moreover, GMC plans to hold a high-level meeting with global leaders to discuss the adoption of crypto in strategic reserves. There is also a goal to establish an international advisory panel on digital assets for GMC.

Binance co-founders Changpeng “CZ” Zhao and Yi He reacted to the crypto adoption plan, and BNB Chain claims that this is a “major milestone for blockchain adoption.”

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Wu Jiexhuang, a member of Hong Kong’s Legislative Council, suggested that Hong Kong should leverage China’s “one country, two systems” policy to incorporate Bitcoin into its national reserves. Speaking to the state-owned newspaper Wen Wei Po, Jiexhuang proposed that Hong Kong could study the market impact of U.S.-based spot Bitcoin exchange-traded funds (ETFs).

Jiexhuang pointed to smaller countries, such as El Salvador and Bhutan, that have integrated Bitcoin into their strategic reserves, as well as certain U.S. states. He also mentioned U.S. President-elect Donald Trump‘s proposal to recognize Bitcoin as a strategic reserve asset, which could significantly impact traditional markets.

China’s Role in Ensuring Hong Kong’s Financial Stability

According to Jiexhuang, Hong Kong authorities should make good use of the “one country, two systems” framework, first by trying to incorporate Bitcoin into ETFs before exploring further ways to increase Hong Kong’s Bitcoin holdings.

Jiexhuang emphasized Bitcoin’s potential to attract talent and investment while also reinforcing financial stability amid market fluctuations. He argued that holding Bitcoin as part of national reserves could mitigate disruptions caused by wider adoption in traditional markets, providing Hong Kong with a first-mover advantage.

The report also mentioned that Hong Kong’s Financial Services and the Treasury Bureau will develop cryptocurrency regulations based on the “same business, same risks, same rules” philosophy.

Jiexhuang concluded, “If major economic powers take the lead in including Bitcoin in strategic reserves, the value of Bitcoin will become more stable, causing other countries to follow suit and reduce their holdings of traditional assets.”

He added, “This would lead to a decrease in the price of traditional assets and shrink the fiscal reserves held in traditional assets by governments.”

Hong Kong Regulators Aim To Make A Significant İnvestment in Bitcoin

According to the report, China currently holds 190,000 Bitcoin through various confiscation efforts, making its Bitcoin reserve second only to that of the United States.

In mid-2024, another Hong Kong Legislative Council member, Johnny Ng, announced plans to collaborate with various stakeholders to assess the feasibility and potential benefits of incorporating Bitcoin into the special administrative region’s financial reserves.

Related tweet:

Ng emphasized the increasing global awareness of Bitcoin, noting that it has become a key element in discussions about digital assets and their integration into traditional financial systems.

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