India's Ruling Party Proposes Bitcoin Reserve Pilot Project

India's ruling party spokesperson, Pradeep Bhandari, has proposed the initiation of a Bitcoin reserve pilot project. This strategic move is aimed at enhancing the country's economic resilience and modernizing its financial framework. Bhandari's proposal underscores the potential benefits of Bitcoin, including its scarcity, liquidity, and transparency, which could be advantageous for India's economic strategy. This aligns with global trends, such as the US's Bitcoin reserve, which has been a key point of discussion in recent economic strategies.

The proposal focuses solely on Bitcoin, avoiding other cryptocurrencies, and highlights the need for a cautious approach. Despite the advocacy, no official funding or policy shifts have been announced by the Indian government. Industry figures, such as Sumit Gupta, CEO of CoinDCX, have publicly supported the initiative, but there are no direct government endorsements or institutional backing currently announced for this pilot initiative.

Bhandari references recent U.S. moves to treat Bitcoin as a strategic reserve asset and Bhutan’s innovative crypto mining powered by hydropower. According to Bhandari, India should consider this not as a radical shift, but as a smart, forward-thinking move to keep pace with global financial innovation. India is rapidly growing its renewable energy infrastructure—solar, wind, and hydropower. Bhandari believes this can support energy-efficient Bitcoin mining, similar to Bhutan’s model which has already built a billion-dollar crypto reserve. A pilot program could strengthen India’s financial system and showcase a balanced approach to integrating digital assets into national reserves.

Despite having a strict tax regime on crypto—30% flat profit tax and 1% TDS—India still lacks a clear regulatory framework. Bhandari is calling for updated, thoughtful regulation to protect investors while enabling responsible innovation. He points out that although India played a key role in forming a global crypto policy discussion during its G20 presidency, it now risks falling behind other nations making bold moves in the space.

The call for a Bitcoin reserve pilot project comes at a time when India is considering strengthening its economic resilience and modernizing its financial framework. The proposal is seen as a significant push toward economic modernization, aligning with international moves that position strategic Bitcoin reserves as a forward-path for economies. The absence of official regulatory changes suggests potential hurdles in implementation, and industry observers will be watching for any concrete policy decisions or financial allocations following Bhandari’s advocacy.

The proposal is influenced by Bhutan’s state-driven Bitcoin reserve strategy, highlighting a growing trend in national economic strategies. While the absence of official regulatory changes suggests potential hurdles in implementation, the proposal aligns with global economic trends and the potential of Bitcoin as a substantial economic asset. The focus on Bitcoin, with its scarcity, liquidity, and transparency, could be advantageous for India's economic strategy, positioning it as a forward-thinking nation in the global financial landscape.

A Bitcoin reserve pilot would allow India to explore Bitcoin’s role in national finance with limited risk. Potential benefits include improved transparency, a boost to financial innovation, and enhanced credibility in global economic forums. Still, any move would need strict oversight, volatility management, and careful regulatory planning. Bhandari maintains that such a step can mark India’s leadership in the next phase of the financial revolution.