India's BJP Proposes Bitcoin Reserve to Compete Globally

India's ruling party has proposed a strategic Bitcoin reserve pilot program, aiming to position the nation competitively within the global digital asset landscape. Bharatiya Janata Party (BJP) national spokesperson Pradeep Bhandari advocated for this initiative in a recent editorial, highlighting the need for India to adapt to the shifting global finance trends. Bhandari cited the United States' strategic Bitcoin reserve and Bhutan's state-led mining operations as successful models that India could emulate. He emphasized that India's expanding renewable energy infrastructure makes it well-suited for a sovereign Bitcoin strategy, describing the approach as a calculated step toward embracing digital asset legitimacy.

Currently, India's regulatory environment for cryptocurrency is complex. The government imposes a 30% flat rate tax on virtual digital assets, including Bitcoin and Ethereum, under Section 115BBH of the Income Tax Act. Additionally, a 1% Tax Deducted at Source (TDS) is applied to cryptocurrency transactions exceeding approximately $115. This regulatory framework creates challenges, as losses from digital assets cannot offset gains from other cryptocurrencies or income sources. Despite these hurdles, Bhandari noted that India played a key role in coordinating 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.

The United States established its strategic Bitcoin reserve through executive action in March 2025. The reserve, valued at over $16 billion, holds approximately 200,000 Bitcoin, which were acquired through criminal forfeitures. Bhutan offers another compelling model, having used hydropower to mine Bitcoin since 2019. The country now holds over 11,000 Bitcoin, worth approximately $1.1 billion. Bhutan leverages its renewable energy resources to power mining operations and 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.

Bhandari's proposal addresses broader questions about India's position in the evolving global digital economy. He emphasized the need for regulatory clarity to accompany any reserve initiative, providing transparency and investor protection. 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. Global cryptocurrency adoption continues to expand, with a significant portion of 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.