BJP Spokesperson Advocates Bitcoin Reserve Pilot for India

Pradeep Bhandari, a national spokesperson for India’s ruling Bharatiya Janata Party (BJP), has advocated for the country to explore launching a Bitcoin reserve pilot. This strategic move, according to Bhandari, would enhance India’s economic resilience and align with the global shift towards digital assets.

In an article, Bhandari highlighted that the United States and Bhutan have already taken steps towards integrating cryptocurrencies into their financial systems. The US, for instance, has plans to expand its Bitcoin reserves through budget-neutral purchases, and several states have authorized Bitcoin as a reserve asset. Bhutan, on the other hand, has initiated state-led mining operations, signaling a broader acceptance of crypto in global finance.

Bhandari emphasized that India, with its growing renewable energy infrastructure, is well-positioned to develop a sovereign Bitcoin strategy. He argued that this move is not reckless but a calculated step towards embracing the legitimacy of digital assets.

Currently, India’s crypto tax policy is in a state of uncertainty. While crypto assets are heavily taxed, there is a lack of regulatory framework. The government has imposed a 30% flat rate tax on virtual digital assets (VDAs) like Bitcoin and Ether, with profits from selling crypto taxed at the same rate. Additionally, a 1% Tax Deducted at Source (TDS) applies to all crypto transactions above a certain threshold.

During India’s G20 presidency, the government coordinated a crypto working group with the International Monetary Fund. However, other nations, including Russia, China, Brazil, and the US, are not waiting for a global consensus and are actively pursuing their crypto efforts.

Bhandari suggested that India’s path forward should include regulatory clarity, starting with a sovereign Bitcoin reserve initiative. He believes that clear regulation could bring transparency and oversight to the emerging asset class, enabling innovation while protecting investors.

“India stands at a pivotal juncture,” Bhandari wrote. “A measured Bitcoin strategy—perhaps a reserve pilot—could strengthen economic resilience and project modernity.”

Bhandari’s proposal underscores a growing global trend where governments are exploring the integration of cryptocurrencies into their financial systems. The US has taken significant steps in this direction, with recent rule changes allowing Bitcoin to be used as part of mortgage reserves. This development is expected to boost the adoption of cryptocurrencies in the housing market, providing homebuyers with more flexible financial options.

The call for a Bitcoin reserve pilot in India is part of a broader discussion on the role of digital currencies in national economies. Bhandari's suggestion aligns with the global shift towards digital assets, where countries are increasingly recognizing the potential of cryptocurrencies to enhance financial inclusion and innovation.

The potential benefits of a Bitcoin reserve pilot in India are multifaceted. It could provide a framework for understanding the risks and opportunities associated with digital currencies, paving the way for more comprehensive regulations. Additionally, it could foster innovation in the fintech sector, attracting investments and talent to the country. However, the implementation of such a pilot would require careful consideration of regulatory frameworks, security measures, and public awareness campaigns to ensure a smooth transition.