Indian Politician Calls for Bitcoin Reserve Pilot as US and Bhutan Adopt Crypto Strategies
June 26, 2025 — In a notable appeal for progressive crypto policy in India, Pradeep Bhandari, spokesperson for the ruling Bharatiya Janata Party (BJP), has urged the Indian government to consider launching a Bitcoin reserve pilot program. Highlighting global shifts in financial strategies, Bhandari emphasized the strategic benefits such a move could bring to India’s economy and digital asset landscape.
Global Crypto Adoption Inspires Indian Initiative
Writing for India Today, Bhandari referenced recent moves by countries like the United States and Bhutan as indicators that the international financial ecosystem is increasingly embracing cryptocurrencies. The US government, for instance, has announced plans to expand its Bitcoin (BTC) reserves through budget-neutral purchases. Additionally, three US states have already authorized Bitcoin as a reserve asset, signaling a strong shift toward integrating digital assets into official financial frameworks.
Bhutan’s state-led mining initiatives also illustrate a proactive national approach to crypto, demonstrating how sovereign strategies can tap into evolving digital asset markets.
"Global finance is shifting toward crypto," Bhandari noted, underscoring that India, with its growing renewable energy infrastructure, is well positioned to implement a sovereign Bitcoin strategy. He framed the proposal not as a reckless deviation, but as a calculated step to legitimize digital assets within the country’s economy.
Current Crypto Regulations in India: Taxed but Unregulated
India’s existing stance on cryptocurrencies remains complex and somewhat contradictory. While crypto assets are subject to heavy taxation, the regulatory environment is notably absent. Under Section 115BBH of India’s Income Tax Act, profits from virtual digital assets, including Bitcoin and Ethereum (ETH), incur a flat 30% tax. However, this regulation allows deductions only for the purchase cost of the cryptocurrency and excludes other expenses or losses. Additionally, a 1% Tax Deducted at Source (TDS) is imposed on all crypto transactions exceeding $115, levied on either the buyer or seller.
Bhandari pointed out that although India took steps during its G20 presidency in 2023 by helping establish a crypto working group with the International Monetary Fund (IMF), other major economies are moving decisively ahead in crypto adoption without waiting for multilateral consensus. Countries such as Russia, China, Brazil, and the US are aggressively pursuing their crypto agendas, leaving India at a critical crossroads.
Bitcoin Reserve Pilot Could Spur Innovation and Economic Resilience
Bhandari’s proposal goes beyond rhetoric; he calls for clear regulatory frameworks to accompany any Bitcoin reserve initiative. He argues that regulatory clarity will bring necessary transparency and oversight, fostering investor protection while unlocking innovation in the digital asset sector.
“India stands at a pivotal juncture,” Bhandari wrote. “A measured Bitcoin strategy—perhaps a reserve pilot—could strengthen economic resilience and project modernity.” He envisions the pilot as a foundational step that could position India as a forward-looking player in the global digital economy.
The Road Ahead for India’s Cryptocurrency Policy
The call for a sovereign Bitcoin reserve mirrors broader debates taking place within India’s legislative and economic circles about how to balance innovation, economic growth, and investor safeguards. The government’s current tax-heavy but regulation-light approach has created uncertainty for investors and businesses, which might be alleviated by a more structured and transparent framework.
As India watches other countries advance in their crypto adoption strategies, Bhandari’s remarks add a significant voice to the chorus pushing for pragmatic policy reforms. Should the government heed this advice, India could pioneer a distinctive route within South Asia, leveraging its renewable energy capabilities and large digital economy to carve out a substantial role in the global crypto market.
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