In late August, Hobeng Lim was formally appointed as managing director at the Gelephu Mindfulness City (GMC) in Bhutan, tasked with spearheading the development of the new city’s financial sector encompassing digital assets, fintech and traditional finance. Showing Bhutan’s ambitions, the development of a digital currency is also on the agenda.
The GMC is a Special Administrative Region (SAR) to be established in the south-central part of Bhutan, the South Asian kingdom on the Himalayas’ eastern edge. As stated in the King’s speech late last year, the city will prioritise values such as happiness, mindfulness, sustainability, and its Buddhist spiritual heritage.
According to an August 29 press release, Lim (pictured) will focus on forging alliances with Bhutanese and international stakeholders from both public and private sectors to transform the region into a “global innovation epicentre founded on principles of openness and trust and the core values of Gross National Happiness”.
“Gelephu will become a gateway connecting Bhutan to the world and the future,” King Jigme Khesar Namgyel Wangchuck, said in his speech. “A gateway to markets, capital, new ideas, knowledge, and technology towards our future.”
FinanceAsia recently spoke with Lim about his new role and his vision of a mindful financial sector in the South Asian kingdom.
Regulatory framework
Lim’s most recent role was managing director for Asia Pacific (Apac) region at BitGo, a global digital asset custodian and broker. His past experiences also include working with the Financial Services Regulatory Authority at Abu Dhabi Global Market (ADGM) and at the Monetary Authority of Singapore (MAS), as regulators. In the ADGM role, he helped established a financial free zone in the United Arab Emirates.
He cited his experience spanning across both traditional and decentralised finance, and both private sector and regulatory bodies, as one of the reasons he was hired in the new role.
Establishing a legal and regulatory framework for the city’s financial sector, spanning both traditional finance and Web 3, is one of Lim’s top priorities for the role. He told FA that a framework can be expected to be outlined in a couple of months.
The rules will be based on English common law, and similar to those in regional finance hubs such as Hong Kong and Singapore, to ensure a smooth understanding from investors and companies globally.
“We are taking regulatory and finanial sector best-practices from the best jurisdictions across the globe, yet remaining robust and risk-proportionate,” he said, citing the keywords of ‘clarity’, ‘co-creation’ and ‘customer-centric’.
Mindful finance
Bhutan might not be seeking to establish a financial hub to compete with Hong Kong and Singapore. The finance industry here is viewed from a slightly different perspective.
“There will be certain similarities in terms of regulation. But we are looking at finance as an engine to power economic sectors in the GMC such as health, education, green energy, aviation and agriculture,” he explained.
“We would seek to curate businesses that have a positive impact on the environment and society. It would not be capitalism at all costs, but capitalism that is very consciously calibrated in a way that gives back to society.”
On top of it, the GMC aims to become an international platform for providing traditional finance and blockchain services to the world.
As an example of the city’s growing finance sector, FA reported in May that ORO Bank launched its minimum viable product (MVP), commencing operations as the official bank of the GMC.
ORO Bank claims it is Asia’s first full reserve bank, where it keeps all depositors’ money without engaging in lending or credit issuances. The idea is to be able to offer full liquidity, and therefore to avoid a bank run.
Sustainable finance is another key area to promote, according to Lim. He hopes to push ahead with green finance, sustainable innovation, green technologies and clean energy, with favourable incentives and rules.
Bhutan is home to abundant natural resources such as minerals and its hydropower sector is growing, Lim pointed out, meaning international players could use the country to help connect the wider South Asian and Southeast Asian region, which is home to a huge population and many diverse resources.
He also wants to introduce a plan for an entrepreneurship wellness centre, to address issues such as burnout and the intense work culture across the finance industry. The aim is for the GMC to encourage companies to prioritise their employees to ensure a healthy work-life balance, and he believes Bhutan will be a nice place for workers to rejuvenate themselves and improve well-being.
Wealth management and asset management are two other focussing areas, Lim said.
