As global adoption of digital assets accelerates, India finds itself at a critical decision point. Pradeep Bhandari, spokesperson for the ruling BJP, has called on the government to explore a pilot Bitcoin reserve, citing international examples from the United States and Bhutan.
Global Trends: Digital Reserves in Action
Nations are beginning to incorporate Bitcoin into their sovereign strategies. Recent moves include:
- In March 2025, the U.S. established a Strategic Bitcoin Reserve using over 200,000 BTC—worth approximately $20 billion—as a hedge against inflation. Several U.S. states now hold Bitcoin through public investment funds.
- Bhutan, taking advantage of its hydropower resources, has mined more than $1 billion worth of Bitcoin through state-led initiatives.
These examples underscore how countries are adapting to the financial future by aligning policy with digital innovation.
India’s Potential Path: Strategic, Sustainable, and Secure
Bhandari advocates for a small-scale pilot project to test the feasibility of a national Bitcoin reserve. With India’s growing renewable energy infrastructure and a young, tech-savvy population, the country could unlock several benefits:
- Serve as a hedge against inflation and diversify national reserves
- Drive financial innovation and economic resilience
- Attract global and domestic investors through clear regulations
Yet, significant obstacles remain. India currently imposes a 30% tax on crypto gains and enforces a 1% TDS on large transactions. More critically, the absence of a comprehensive regulatory framework creates uncertainty for investors. The long-awaited policy paper on crypto remains pending.
Evaluating the Strategy: Pilot Before Policy
A pilot Bitcoin reserve could help India assess and refine several core areas:
- Managing price volatility and accurately valuing digital reserves
- Establishing robust security and custody measures
- Defining regulatory parameters to ensure investor protection and institutional involvement
- Tying Bitcoin usage to renewable energy strategies, aligning financial goals with sustainability targets
While BJP backing signals rising political interest, financial authorities remain hesitant. Nonetheless, models like Bhutan’s sovereign mining operations and U.S. state-level investments provide adaptable templates.
India stands at a crucial juncture. It can either pioneer sovereign digital asset adoption or risk being left behind. A well-designed pilot program, grounded in strong regulation, could enhance India’s financial independence and position it among leading digital economies.
Bhandari’s proposal reflects a broader global trend toward embracing Bitcoin as “digital gold.” For India, the moment to act may be now.
