Thomas Daniels
India Weighs Bitcoin Reserve Pilot as Global Crypto Reserves Expand
As global governments pivot toward digital assets, a senior figure in India’s ruling Bharatiya Janata Party (BJP) has proposed a bold step: initiating a national Bitcoin reserve pilot.
In an editorial published in India Today, BJP national spokesperson Pradeep Bhandari argued that India should not remain a passive observer while nations like the United States and Bhutan integrate Bitcoin into sovereign strategies. “This isn’t a reckless pivot,” Bhandari wrote. “It’s a calculated step toward embracing digital assets’ legitimacy.”
Global Precedents Set the Tone
Bhandari referenced the United States’ evolving approach, where federal authorities have formalized plans to expand Bitcoin reserves through budget-neutral acquisitions. Additionally, Bhutan has quietly built a sizable reserve, leveraging hydropower to mine Bitcoin under state supervision—amassing nearly $1 billion in digital assets.
These developments, Bhandari argues, signal a broader realignment of financial strategies where Bitcoin is no longer treated as fringe, but as a credible reserve instrument.
India’s Regulatory Vacuum
India currently imposes a 30% tax on gains from virtual digital assets under Section 115BBH of its Income Tax Act, alongside a 1% tax deducted at source (TDS) on crypto transactions over ₹10,000 (approximately $115). Despite this strict taxation regime, the country lacks a formal regulatory framework for digital assets—a dichotomy Bhandari describes as “taxed but unregulated.”
During India’s G20 presidency in 2023, the country co-chaired a crypto policy working group with the International Monetary Fund. However, progress on domestic regulation has stalled, even as other major economies accelerate their own strategies.
A Strategic Inflection Point
According to Bhandari, India’s expanding renewable energy capacity could be a key enabler of a sovereign Bitcoin strategy. He proposed a limited-scale reserve pilot, potentially under central bank supervision, to test market dynamics, custody protocols, and integration with energy infrastructure.
He emphasized that clear regulatory guidance—not simply taxation—is vital to encourage innovation, provide investor safeguards, and maintain global competitiveness. “India stands at a pivotal juncture,” he wrote. “A measured Bitcoin strategy—perhaps a reserve pilot—could strengthen economic resilience and project modernity.”
