A royal decree has turned the Gelephu Financial Services Office into an autonomous central bank with permission to hold digital and crypto assets in its reserves. The new Gelephu Central Bank will serve Gelephu Mindfulness City, a special administrative region in southern Bhutan.
The decree, signed on November 1-2, 2026, gives the institution a full set of central banking powers within the city's borders. Its reserves may include digital and crypto assets alongside traditional holdings.
What the decree establishes
The Gelephu Central Bank will manage monetary policy, oversee foreign reserves and supervise financial institutions operating in the city. The crypto provision allows the bank to invest in digital and cryptocurrency assets as part of its reserve portfolio.
That permission is optional rather than mandatory. The decree does not require the bank to buy crypto. The stated aim is to strengthen the bank's liquidity and accountability policies.
The decree also leaves open the possibility of a currency. The bank may eventually issue its own currency, potentially in digital form. That step would require royal approval, so it remains a possibility rather than a plan in motion.
Gelephu's crypto groundwork
Gelephu Mindfulness City has been building a fintech framework that combines traditional finance with regulated digital asset services. Bitcoin is the largest piece of that groundwork. In December 2025, the city received a pledge of up to 10,000 BTC drawn from Bhutan's national holdings.
The zone has also opened the door to private crypto firms. BTSE Bhutan is among the licensed digital asset companies handling trading and custody inside the zone.
Gelephu Mindfulness City is also recruiting more than 50 professionals for roles tied to virtual asset supervision and financial regulatory policy. Its broader ambition is to be an international financial hub that blends conventional banking with regulated crypto services.
What it means for the zone and the crypto industry
For the digital asset industry, the main significance is legitimacy. A central bank, even one serving a single special zone, now has formal permission to treat crypto as a reserve asset.
For crypto firms looking for a regulatory home, the city's package is taking shape. It includes a licensing regime, licensed operators such as BTSE Bhutan, a growing supervisory team and a central bank with crypto-friendly reserve rules.
The 10,000 BTC pledge adds another layer. If the Gelephu Central Bank decides to use its crypto authority, the city already sits alongside a large pool of pledged Bitcoin.
Open questions
The crypto allocation is optional, so the actual size of any holdings remains unknown. The digital currency idea is further out: it depends on royal approval, and no timeline has been attached.
Recruiting more than 50 specialists in virtual asset regulation is ambitious for any jurisdiction. The quality of those hires will likely shape whether international firms see the city as a serious hub or an interesting experiment.
The next markers to watch are concrete. Whether the central bank discloses any digital asset holdings, whether royal approval for a currency materializes, and whether more licensed firms follow BTSE Bhutan into the zone.
