India's BJP Proposes National Bitcoin Reserve to Boost Economy

Pradeep Bhandari, a national spokesperson for India's ruling BJP party, has proposed that the government establish a national Bitcoin reserve. This move, according to Bhandari, could significantly boost India's economy and position the country as a leader in the digital world. He believes that India is at a critical juncture where a proactive and strategic approach to cryptocurrency could enhance economic resilience and project modernity.

Bhandari suggests starting with a pilot project using already-seized Bitcoin, which would allow the country to test the waters without incurring significant costs. This cautious approach could serve as a foundation for a more comprehensive national strategy. Globally, governments are increasingly recognizing the potential of Bitcoin not just as a trading tool, but as a crucial component of their financial strategies. For instance, the United States established a Strategic Bitcoin Reserve in January 2025, which includes over 200,000 BTC seized from cybercriminals, currently valued at over $20 billion. The U.S. views this reserve as an inflation hedge and has plans to expand it through budget-neutral mechanisms.

Both the IMF and the SEC now acknowledge Bitcoin as a distinct form of asset, creating pressure on other nations, including India, to establish their own directions in the expanding digital economy. In India, cryptocurrency users are subjected to heavy taxes but receive little guidance from regulators. Gains on digital assets like Bitcoin and Ethereum are taxed at a flat 30% rate, and there is a 1% Tax Deducted at Source (TDS) on every crypto transaction exceeding a certain threshold. While these regulations generate tax revenue, many argue that they hinder users from trading or investing smoothly.

Bhandari believes that this policy void is preventing India from moving forward. He asserts that the government must establish clear guidelines, not only for taxation but also for utilizing Bitcoin and other assets for national gain. Other countries are demonstrating the benefits of a robust national strategy. Bhutan, for example, has adopted Bitcoin mining through green energy and has constructed reserves worth close to a third of its GDP. The U.S. is utilizing Bitcoin in its national reserve strategy, using seized funds to hedge against inflation. These bold steps are accelerating digital assets from the periphery towards the mainstream of finance.

India has already contributed to framing global crypto dialogue, particularly during its G20 presidency in 2023. However, while India is still in the discussion phase, other nations such as the U.S., China, Russia, and Brazil are already implementing their strategies. Bhandari thinks that India must end the wait for worldwide agreement and start formulating its own Bitcoin strategy. Beginning with a pilot reserve based on seized properties might be a wise and secure initial step. If executed well, this could make India a major contender in the future of digital finance.