Indian Politician Advocates for Bitcoin Reserve Pilot as US and Bhutan Advance Crypto Policies
June 26, 2025 — By Ezra Reguerra
In a significant call for innovation in digital finance, Pradeep Bhandari, national spokesperson for India’s ruling Bharatiya Janata Party (BJP), has urged the Indian government to consider launching a Bitcoin reserve pilot. This proposal comes amid growing global momentum in cryptocurrency adoption, with countries like the United States expanding Bitcoin reserves and Bhutan developing state-led Bitcoin mining operations.
Embracing Crypto: A Strategic Move for India
In a recent article published by India Today, Bhandari highlighted that the global financial landscape is rapidly shifting towards digital assets like Bitcoin (BTC). He pointed to the United States’ strategic Bitcoin reserve initiatives and Bhutan’s efforts in sovereign Bitcoin mining as clear indicators of this trend.
“India is uniquely positioned to leverage its expanding renewable energy capacity to develop a sovereign Bitcoin policy,” Bhandari wrote. Emphasizing the need for a balanced and well-thought-out approach, he described such a move not as a reckless shift, but as a “calculated step toward embracing digital assets’ legitimacy.”
Addressing India’s Crypto Regulatory Gap
Currently, India’s cryptocurrency ecosystem operates in a state of limbo. While virtual digital assets (VDAs) like Bitcoin and Ethereum are subject to heavy taxation, the sector remains largely unregulated — a situation that Bhandari underlined as problematic.
Under the Income Tax Act’s Section 115BBH, any gains from the sale of cryptocurrencies are taxed at a flat rate of 30%. Although taxpayers can deduct the purchase cost, other related expenses and losses have no provision for deduction. Additionally, a 1% Tax Deducted at Source (TDS) is applied on all crypto transactions exceeding approximately $115, levied on either the buyer or seller.
Despite these tax measures, a comprehensive regulatory framework outlining crypto operations, investor protections, and oversight remains absent.
India’s Role on the Global Crypto Stage
Bhandari recalled that during India’s G20 presidency in 2023, the country helped spearhead a working group with the International Monetary Fund focused on cryptocurrency. However, he observed that other nations—including Russia, China, Brazil, and G20 frontrunner the United States—are moving swiftly ahead with their crypto strategies without waiting for global consensus.
He highlighted the U.S. government’s plans to expand Bitcoin reserves through budget-neutral purchases and noted that three U.S. states have already authorized Bitcoin as a reserve asset.
Towards a Clear and Innovative Crypto Pathway
Calling for regulatory clarity, Bhandari suggested that initiating a sovereign Bitcoin reserve pilot in India could be a decisive and forward-looking step. Such a program, he argued, would provide transparency and oversight, facilitate innovation in the cryptocurrency sector, and safeguard investors.
“India stands at a pivotal juncture,” Bhandari stated. “A measured Bitcoin strategy — perhaps starting with a reserve pilot — could strengthen economic resilience while projecting an image of modernity on the global finance stage.”
Looking Ahead
With its growing infrastructure for renewable energy and a vibrant digital economy, India’s potential to develop a pragmatic and pioneering approach to cryptocurrency might well position it as a leader among emerging markets in the digital asset space.
As debates continue over how best to regulate and integrate cryptocurrencies into mainstream finance, Bhandari’s call adds a compelling voice pushing for innovation backed by regulatory clarity and strategic foresight.
Related coverage: The Reserve Bank of India is also exploring new use cases for the digital rupee, signaling broader moves within the country’s financial technology framework.
For more insights and updates on cryptocurrency regulation and adoption worldwide, stay tuned to Cointelegraph.