BJP Urges India to Create National Bitcoin Reserve: Pradeep Bhandari's New Strategy

India Weighs Bitcoin Reserve Pilot as Global Crypto Strategies Gain Momentum

As digital assets continue to redefine global finance, India may be preparing to take a significant step forward. A top spokesperson for the ruling Bharatiya Janata Party (BJP), Pradeep Bhandari, has publicly urged the Indian government to consider launching a national Bitcoin reserve pilot program — a move he believes could position the country as a forward-thinking economic power in an increasingly digital world.

Bhandari’s call to action, as reported by Wu Blockchain, comes amid growing international adoption of Bitcoin as part of sovereign financial strategies. In a statement earlier this week, he said:
"India is at a critical juncture. A cautious crypto approach, potentially a reserve pilot, would enhance economic resilience and project modernity."

His proposal is simple, yet bold: use seized Bitcoin assets — already in government custody through law enforcement actions — to initiate a low-risk pilot reserve. This strategy, Bhandari argues, would allow India to experiment with integrating Bitcoin into its fiscal architecture without expending public funds.

A Global Shift: From Skepticism to Strategy

Once dismissed by many governments as speculative or risky, Bitcoin is now being incorporated into sovereign financial strategies. The United States, for instance, formally established a Strategic Bitcoin Reserve in January 2025 under President Donald Trump. That reserve currently holds over 200,000 BTC—valued at more than $20 billion—which were initially seized from cybercriminals and dark web activities.

Source: CoinMarketCap

The U.S. government now views Bitcoin not just as a digital asset, but as a strategic inflation hedge, comparable in utility to gold. Washington has also signaled its intention to expand this reserve using budget-neutral methods, likely involving additional asset seizures and token management strategies.

At the time of reporting, Bitcoin is trading at $107,509.13, reflecting a modest daily drop of 0.25%. This comes after a significant recovery from the $100,000 level during recent geopolitical tensions between Iran and Israel.

International institutions are beginning to recognize the shift as well. The International Monetary Fund (IMF) and the U.S. Securities and Exchange Commission (SEC) have both publicly acknowledged Bitcoin as a distinct asset class, placing pressure on other countries to define their crypto positions.

India’s Crypto Framework: Tax-Heavy, Policy-Light

India’s relationship with cryptocurrencies remains complicated. While the government has imposed some of the world’s strictest crypto tax regimes, there is a lack of clear policy direction when it comes to regulatory frameworks, asset classification, or national adoption.

Under Section 115BBH of India’s Income Tax Act, digital asset gains — including from Bitcoin and Ethereum — are taxed at a flat 30%. Traders are allowed to deduct the cost of purchase, but cannot offset losses or deduct other related expenses.

Moreover, a 1% Tax Deducted at Source (TDS) is levied on every crypto transaction exceeding ₹9,500 (around $115), charged to either the buyer or the seller. These regulations have been criticized as onerous and overly restrictive, pushing many Indian crypto traders toward international platforms or informal networks.

According to Bhandari, this lack of clarity is stalling India's momentum in the digital economy. He has emphasized the need for a national framework that extends beyond taxation, encompassing usage models, infrastructure support, and strategic adoption mechanisms.

Lessons from Bhutan, the United States, and Beyond

Bhandari’s recommendations are not made in a vacuum. Several nations have already begun experimenting with sovereign-level crypto integration—with varying models and motives.

Take Bhutan, for example. The Himalayan kingdom has embraced green-powered Bitcoin mining, leveraging its abundant hydropower to build digital reserves valued at nearly one-third of its GDP. By adopting Bitcoin in this way, Bhutan aims to diversify its national income while promoting sustainable blockchain development.

Similarly, the United States' Bitcoin reserve strategy shows that seized digital assets can be transformed into national financial tools. Rather than selling confiscated BTC at auctions, as in the past, Washington now retains them as a store of value — an approach that aligns with its broader anti-inflationary stance.

Even China, though publicly critical of crypto trading, is heavily invested in blockchain infrastructure, and has developed one of the world’s most advanced central bank digital currency (CBDC) systems.

Could India Take the Lead?

India has already shown willingness to engage in global crypto discussions. As chair of the G20 Summit in 2023, India facilitated critical dialogue between the IMF, World Bank, and Financial Stability Board on digital asset regulation. However, dialogue alone is no longer enough.

Countries like the U.S., China, Russia, and Brazil have moved from discussion to implementation, building out strategies that either adopt blockchain, experiment with digital currencies, or embrace Bitcoin as part of a diversified reserve.

Bhandari sees this as India’s moment. He suggests that a small-scale Bitcoin reserve pilot — using already-seized BTC assets — would be a secure, low-cost way to explore the feasibility of integrating digital currency into national financial strategy.

If successful, it could serve as the foundation for a more expansive initiative, including regulated public investment channels, crypto-backed bonds, or even a framework for institutional staking of cryptocurrencies.

Economic and Political Implications

The proposal arrives at a time when India is seeking to modernize its economy, promote financial inclusion, and assert itself as a technological powerhouse. A Bitcoin reserve could serve several political and economic objectives:

• Inflation Hedge: Like the U.S., India could use Bitcoin to reduce its exposure to fiat-based inflationary pressures.

• Digital Reputation: Such a move would position India as a forward-looking nation that embraces financial innovation.

• Utilization of Seized Assets: Rather than liquidating confiscated crypto assets at auction, India could retain them as long-term national stores of value.

• Boost to Web3 Ecosystem: The establishment of a national reserve could have ripple effects across India’s blockchain industry, encouraging more developers, startups, and institutions to build within a clearly defined crypto environment.

Final Thoughts: Time for Action, Not Just Discussion

India stands at the crossroads of financial tradition and digital innovation. With a growing population of tech-savvy youth, a dynamic startup ecosystem, and a strong governmental mandate for digital infrastructure, the country is well-positioned to lead in the emerging era of blockchain and decentralized finance.

However, action is required. Bhandari’s call for a Bitcoin reserve pilot program provides a pragmatic first step toward deeper engagement with digital currencies. By starting small — with existing assets and a limited-scope test — India can explore the benefits and challenges of national crypto integration without significant financial risk.

The question now is not whether India should act, but when.

As digital assets become entrenched in the financial playbooks of global superpowers, India must decide: Will it lead the crypto future — or follow it?

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

 Check out other news and articles on Google News

Disclaimer:

The articles published on hokanews are intended to provide up-to-date information on various topics, including cryptocurrency and technology news. The content on our site is not intended as an invitation to buy, sell, or invest in any assets. We encourage readers to conduct their own research and evaluation before making any investment or financial decisions.

hokanews is not responsible for any losses or damages that may arise from the use of information provided on this site. Investment decisions should be based on thorough research and advice from qualified financial advisors. Information on HokaNews may change without notice, and we do not guarantee the accuracy or completeness of the content published.