India's Ruling Party Advocates Bitcoin Reserve Pilot for Economic Resilience

India’s ruling party spokesperson, Pradeep Bhandari, has advocated for the country to explore launching a Bitcoin reserve pilot, emphasizing that this move would enhance economic resilience and align with global financial trends.

In an article for a prominent Indian publication, Bhandari highlighted that the United States' strategic Bitcoin reserve and Bhutan’s state-led mining operations indicate a global shift towards cryptocurrency. He noted that India, with its expanding renewable energy infrastructure, is well-positioned to develop a sovereign Bitcoin strategy.

Bhandari clarified that this proposal is not a hasty decision but a deliberate step towards recognizing the legitimacy of digital assets. He pointed out that while crypto assets are heavily taxed in India, there is a lack of regulatory framework. The government has imposed a 30% flat rate tax on virtual digital assets, including Bitcoin and Ether, with no provisions for other expenses or losses. Additionally, a 1% Tax Deducted at Source applies to all crypto transactions above a certain threshold.

During India’s G20 presidency, the government facilitated a crypto working group with the International Monetary Fund. However, Bhandari noted that other nations, including Russia, China, Brazil, and the United States, are not waiting for a global consensus to advance their crypto initiatives. He cited the US government’s plan to expand its Bitcoin reserves through budget-neutral purchases and mentioned three US states that have already authorized Bitcoin as a reserve asset.

Bhandari proposed that India’s next steps should include regulatory clarity, starting with a sovereign Bitcoin reserve initiative. He argued that clear regulation could bring transparency and oversight to the emerging asset class, enabling innovation while protecting investors. According to Bhandari, India is at a critical point where a measured Bitcoin strategy, such as a reserve pilot, could bolster economic resilience and demonstrate modernity.