BJP Spokesperson Calls for India to Create Sovereign Bitcoin Reserve

Pradeep Bhandari, a spokesperson for the Bharatiya Janata Party (BJP), has called for India to explore the creation of a sovereign Bitcoin reserve as part of a national economic strategy. This proposal comes amidst ongoing global efforts to integrate cryptocurrencies into public financial systems. Bhandari highlighted that while India taxes digital assets at a flat rate of 30%, the lack of proper regulation leaves the sector incomplete. He suggested that a Bitcoin reserve pilot could address both innovation and oversight, providing financial stability and formalizing the digital asset class within India’s economic framework.

Bhandari referenced the U.S. federal government’s plan to expand its Bitcoin reserves using budget-neutral mechanisms, such as asset seizures and crypto bond issuances. He also mentioned that three U.S. states have passed legislation authorizing Bitcoin as a reserve asset. Notably, Texas has become the first state to act on this authorization with Senate Bill 21, which allocates $10 million in public funds to create a standalone Bitcoin reserve. This reserve will remain separate from the state’s primary treasury system, and House Bill 4488 prevents automatic transfers of the reserve into the general fund. Officials have confirmed that the reserve will be managed independently and will not be tied to the state’s regular cash holdings.

Bhandari also pointed to Bhutan’s state-managed Bitcoin mining operations as an example of sovereign-level involvement in digital assets. Bhutan has reportedly mined over $1 billion worth of Bitcoin using its hydropower resources. He suggested that India could build a similar program by leveraging its renewable energy infrastructure and information technology expertise, framing this as a step toward long-term financial planning. During India’s G20 presidency in 2023, the country helped establish a working group with the International Monetary Fund on crypto regulation. However, Bhandari noted that other countries are moving faster toward implementation.

Bhandari’s proposal for a Bitcoin reserve pilot in India is a significant step towards integrating cryptocurrencies into the country’s economic framework. By establishing a reserve, India could gain regulatory clarity and governance over the digital asset sector, which is currently taxed but unregulated. This move would not only provide financial stability but also position India as a leader in the global adoption of cryptocurrencies. The success of such a pilot could pave the way for broader acceptance and integration of digital assets in the country’s financial system.