India's Ruling Party Calls for Bitcoin Reserve Pilot

India is at a critical juncture in its economic trajectory, with the rapid emergence of Bitcoin as a strategic reserve asset. The growing adoption of Bitcoin is prompting countries to reconsider its role in national economic planning, and India is no exception. Pradeep Bhandari, a national spokesperson for the Bharatiya Janata Party (BJP), India’s ruling political party, has called for the country to evaluate the evolving position of Bitcoin in global finance. He emphasized that India has a unique opportunity to lead in this area, stating that a measured Bitcoin strategy, perhaps a reserve pilot, could strengthen economic resilience and project modernity.

Bhandari referenced the U.S. Strategic Bitcoin Reserve, created in March, which is believed to hold up to 200,000 seized bitcoins. Despite the uncertainty surrounding the exact holdings, states such as Texas are pursuing similar reserves, indicating increased interest in Bitcoin as part of public financial planning. The federal government may also consider expanding Bitcoin holdings without adding taxpayer costs. Legislative efforts in several states to establish public Bitcoin reserves reflect growing institutional acceptance of digital assets as a hedge against economic instability.

Bhandari suggested that India could follow Bhutan’s model, provided there is clear policy and regulatory guidance. Since 2021, Bhutan has used hydropower to mine Bitcoin, accumulating a reserve valued at $1.3 billion. Initially launched to offset declining tourism revenue, the strategy has since supported public services and long-term sustainability. As Bitcoin gains global recognition from entities such as the International Monetary Fund (IMF) and the U.S. Securities and Exchange Commission (SEC), Bhandari urged India to consider a measured approach. He stressed that regulation remains pivotal, and India’s crypto policy, taxed but unregulated, needs clarity to unlock potential.

India's ruling party has been vocal about the need for a clear strategy on Bitcoin, with calls growing for the country to launch a Bitcoin reserve pilot. This push comes amid a global shift towards digital assets and unclear crypto regulations in India. The national spokesperson for the ruling party has suggested that the country should explore a Bitcoin reserve pilot and proactively work on a strategy to embrace digital assets' legitimacy. This move is seen as a calculated step towards recognizing the growing importance of digital assets in the global financial landscape.

The suggestion to build a national Bitcoin reserve has been compared to the strategies adopted by other countries, with a spokesperson citing Bhutan's Bitcoin mining strategy as an example. The idea is to follow the lead of countries like the U.S., which have already started considering the benefits of a national Bitcoin reserve. This shift in stance is significant, as it indicates a potential change in India's approach to digital assets, which has been largely cautious and regulatory-focused until now.

The push for a Bitcoin reserve pilot comes at a time when Bitcoin miners are holding onto their coins despite falling profits. This trend suggests that there is a growing conviction among miners about the long-term value of Bitcoin, which could further bolster the case for a national reserve. The ruling party's spokesperson has emphasized the need for India to not fall behind in the global digital asset shift, indicating a proactive approach to staying competitive in the evolving financial landscape.

However, the path to implementing a Bitcoin reserve pilot in India is not without challenges. The country's crypto investors are already facing new tax challenges, with the government tightening regulations around digital assets. This includes a flat 30% tax on profits and mandatory reporting requirements, which could complicate the process of establishing a national reserve. Despite these hurdles, the ruling party's push for a Bitcoin reserve pilot signals a significant step towards embracing digital assets and staying relevant in the global financial ecosystem.