His Majesty The King has signed a Royal Decree granting the Gelephu Financial Services Office comprehensive central banking powers, paving the way for its transition into the Gelephu Central Bank. This is expected to strengthen GMC’s financial system and support its development as an international financial centre.
The Gelephu Central Bank will be an autonomous institution with a central banking mandate.
According to a news release, the new central bank will be responsible for monetary policy, foreign reserve management and maintaining financial stability, while continuing to regulate and supervise financial institutions in Gelephu Mindfulness City.
It will also have the authority to establish payment and settlement systems, provide liquidity support when necessary, and support the development of money and capital markets.
The central bank will be empowered to invest in digital assets and cryptocurrencies alongside conventional reserve assets.
It also provides a pathway for GMC to introduce its own currency, including in digital form, subject to His Majesty’s concurrence.
News release says these measures are aimed at building a strong financial foundation and creating an environment that attracts businesses, investors and financial institutions.
According to the news release, more than 50 positions are being opened for Bhutanese and international professionals, covering areas such as virtual asset supervision, anti-money laundering, banking operations, technology, regulatory policy and macroeconomics.
With the transition to a central bank, GMC is moving beyond financial regulation towards building a comprehensive financial ecosystem.
Tashi Dekar
