India's BJP Proposes National Bitcoin Reserve Pilot

A prominent figure from India’s ruling Bharatiya Janata Party (BJP) has proposed the establishment of a national Bitcoin reserve pilot, marking a significant shift in the country's stance on digital assets. This move comes as major economies intensify their digital asset strategies, placing India at a critical juncture.

The proposal, put forth by BJP national spokesperson Pradeep Bhandari, is framed as a pragmatic step rather than a speculative one. Bhandari argues that embracing digital assets is a calculated move toward recognizing their legitimacy. He points to precedents such as Bhutan, which has state-backed Bitcoin mining ventures, and several U.S. states that treat Bitcoin as a reserve asset. Washington is also reportedly exploring strategic reserve accumulation through budget-neutral means. These actions, Bhandari suggests, are practical indicators that cryptocurrency is becoming a part of sovereign strategy.

Currently, India treats cryptocurrency as a taxable asset class without providing a regulatory framework. Under Section 115BBH of the Income Tax Act, profits from crypto are taxed at a flat 30%, with minimal deductions and no allowance for offsetting losses. A 1% Tax Deducted at Source (TDS) applies to all crypto transactions above ₹10,000 (~$115). Despite these strict rules, India lacks oversight mechanisms or licensing pathways, creating a policy stance that generates revenue but offers little clarity or protection to investors and builders.

Bhandari contends that this approach is unsustainable. During India’s G20 presidency in 2023, the government facilitated crypto discussions with the IMF, but progress has been slow. Meanwhile, G20 peers like Russia, China, Brazil, and especially the U.S. are advancing rapidly in the crypto space.

The suggestion of a Bitcoin reserve pilot is more than symbolic. Bhandari sees it as a way for India to test digital asset integration at a sovereign level while shaping a broader regulatory framework. With India’s strong renewable energy base, he also hints at the potential to link mining or reserve-building with domestic energy policy, similar to Bhutan or El Salvador. The reserve concept could help India keep pace globally and lay the groundwork for deeper innovation in digital finance, positioning the nation as a net exporter of policy, tech, and talent.

India remains a high-potential but uncertain environment for crypto investors and companies. A sovereign reserve pilot, while symbolic, would signal intent and potentially open the door to more structured regulation. If Bhandari’s stance gains traction within the BJP and government policymaking circles, it could create a turning point where regulatory clarity in India could unlock a major global crypto market overnight.