Indian Ruling Party Advocates Bitcoin Reserve Initiative as Global Crypto Adoption Accelerates
India's ruling party spokesperson called for a strategic Bitcoin reserve pilot program, positioning the nation to compete with emerging global digital asset frameworks. Cointelegraph reported that Bharatiya Janata Party (BJP) national spokesperson Pradeep Bhandari advocated for the reserve initiative in a recent India Today editorial. The proposal comes as countries worldwide establish cryptocurrency reserves and mining operations using renewable energy sources.
Bhandari referenced the United States strategic Bitcoin reserve and Bhutan's state-led mining operations as examples of nations adapting to shifting global finance. He argued that India's expanding renewable energy infrastructure positions the country well for a sovereign Bitcoin strategy. The spokesperson characterized the approach as a calculated step toward embracing digital asset legitimacy rather than a reckless pivot.
Current Regulatory Landscape Creates Implementation Challenges
India currently maintains a unique position where cryptocurrency remains heavily taxed but largely unregulated. ClearTax confirms that the government imposes a 30% flat rate tax on virtual digital assets including Bitcoin and Ethereum. Under Section 115BBH of the Income Tax Act, profits from selling crypto face this rate plus a 4% cess.
The regulatory framework includes a 1% Tax Deducted at Source (TDS) on cryptocurrency transactions exceeding approximately $115. KoinX notes that while purchase costs can be deducted, no provisions exist for other expenses or losses. This creates a challenging environment where losses from digital assets cannot offset gains from other cryptocurrencies or income sources.
Bhandari pointed out that India helped coordinate a cryptocurrency working group with the International Monetary Fund during its G20 presidency in 2023. However, other nations including Russia, China, Brazil and the United States are advancing their digital asset strategies without waiting for broader consensus.
Global Precedents Demonstrate Viable Models
The United States established its strategic Bitcoin reserve through executive action in March 2025. Reuters reported that President Trump signed the order to create a reserve using Bitcoin already owned by the federal government through criminal forfeitures. The White House confirmed the reserve holds approximately 200,000 Bitcoin valued at over $16 billion.
Bhutan presents a different but equally compelling model for India to consider. Al Jazeera documented how the Himalayan kingdom has used hydropower to mine Bitcoin since 2019. The country now holds over 11,000 Bitcoin worth approximately $1.1 billion according to blockchain analytics firm Arkham.
Bhutan's approach leverages renewable energy resources to power mining operations. CoinCentral revealed that the country uses its cryptocurrency reserves to fund government salaries and public services. Prime Minister Tshering Tobgay explained that excess hydropower generation during summer months makes Bitcoin mining economically practical.
Strategic Implications for India's Economic Future
Bhandari's proposal addresses broader questions about India's position in the evolving global digital economy. The spokesperson emphasized that regulatory clarity should accompany any reserve initiative to provide transparency and investor protection. He argued that clear regulation could enable innovation while protecting market participants from risks associated with the emerging asset class.
India's renewable energy capacity exceeds Bhutan's substantially, suggesting the potential for larger-scale sustainable Bitcoin operations. However, Bhandari stressed that scale, regulation and infrastructure requirements need careful consideration. The approach would need to address both domestic economic benefits and international competitive positioning.
The proposal reflects growing recognition of cryptocurrency's role in national economic strategy. Security.org found that global cryptocurrency adoption continues expanding, with approximately 28% of American adults now owning digital assets. Institutional interest has surged worldwide as governments and corporations integrate cryptocurrency into their financial frameworks.
Industry response has been positive, with CoinDCX CEO Sumit Gupta expressing support for the policy discussion. He characterized cryptocurrency as more than a financial instrument, describing it as geopolitical, economic and strategic. The exchange executive viewed policymaker engagement with this reality as both validating and encouraging for the domestic cryptocurrency sector.
Related Reading on BTC Peers
BTC Peers Global Bitcoin Policy Index provides comprehensive analysis of Bitcoin adoption policies across different countries. This resource offers detailed insights into regulatory frameworks, government stances, and policy developments that shape Bitcoin's integration into national economies. Readers will gain valuable perspective on how different nations approach Bitcoin reserves, mining regulations, and cryptocurrency integration strategies to inform their understanding of global digital asset policy trends.
