Indian Politician Urges Bitcoin Reserve Pilot Amid US Shift

A prominent Indian politician has called on the government to consider launching a pilot program for a national Bitcoin reserve, signalling a potential shift in the country’s stance toward digital assets. 

Overview

In an article for India Today, Bharatiya Janata Party (BJP) spokesperson Pradeep Bhandari stated that the United States’ strategic Bitcoin reserve and Bhutan’s government-backed mining initiatives indicate a global financial shift toward cryptocurrency. The proposal comes as the US and several other countries begin to embrace Bitcoin (BTC) as a strategic reserve asset.

Speaking at a digital finance summit in New Delhi, the Member of Parliament emphasised the need for India to explore

“fu

Bitcoin (BTC)

ture-ready financial infrastructure”

and recommended a Bitcoin (BTC) reserve initiative at a limited scale to study its potential impact. “I

ndia must not be left behind as the global financial order evolves,”

he said, noting Bitcoin’s growing role in institutional portfolios and national reserves.

While the lawmaker did not name specific government departments, he suggested that the pilot could be run under the oversight of the Reserve Bank of India (RBI) or a designated sovereign innovation body. The idea would be to allocate a small percentage of the country’s foreign exchange reserves into Bitcoin (BTC), carefully monitored over time to evaluate volatility, storage, and returns. India currently holds over $640 billion in forex reserves, mainly US Treasury bonds, gold, and foreign currencies. Even a 0.5% allocation to Bitcoin (BTC) would represent a significant experiment in digital asset adoption by a major emerging economy.

Global Momentum Builds as US States Lead Bitcoin Reserve Adoption

The Indian proposal follows a wave of developments in the US, where Bitcoin (BTC) is increasingly considered a strategic reserve asset. Texas recently became the first US state to establish a Bitcoin reserve fund, allocating public funds to acquire and hold Bitcoin (BTC) as a long-term store of value. Other American states, including Florida and Wyoming, are exploring similar initiatives. They cite Bitcoin’s fixed supply and resistance to inflation as compelling reasons for including it in public treasuries. 

At the federal level, several lawmakers have also advocated for clearer crypto policies and the potential role of economic resilience. Institutional support is also growing. Companies like MicroStrategy and Tesla have famously added Bitcoin (BTC) to their balance sheets, and BlackRock’s Bitcoin ETF has brought crypto exposure to traditional finance portfolios. These developments suggest increasing acceptance of Bitcoin (BTC) as a macro-hedging instrument—a trend that Indian policymakers are beginning to notice.

The Indian MP highlighted these international moves as part of his rationale, warning that ignoring such trends could erode India’s financial competitiveness.

“Bitcoin is not a passing fad. It’s an emerging financial asset class that central banks and governments are beginning to study seriously,”

he said.

Regulatory Uncertainty Remains a Key Barrier in India’s Crypto Landscape

Despite the call for a pilot, India’s regulatory environment remains highly restrictive for crypto assets. The RBI has maintained a cautious stance, and while the Supreme Court overturned the 2018 banking ban on crypto in 2020, the central bank has since pushed for legislation to prohibit or tightly regulate digital assets. India has imposed a 30% tax on crypto gains and a 1% TDS (tax deducted at source) on transactions, contributing to a steep decline in domestic trading volumes. Exchanges have also struggled with banking access and regulatory ambiguity, pushing many crypto entrepreneurs to relocate abroad.

The politician proposing the Bitcoin reserve pilot acknowledged these hurdles but framed the pilot as an

“exploratory hedge”

rather than a full-fledged policy shift. He argued that ignoring digital asset innovation outright would be shortsighted, especially as other economies experiment with crypto reserves and central bank digital currencies (CBDCs).

“There is room for experimentation without full adoption. A well-structured pilot program can provide data, foster dialogue, and help India make informed decisions,”

he concluded. The proposal has not received a formal response from the Indian government or the RBI, but it has sparked debate among economists, tech entrepreneurs, and policymakers. Whether it gains traction or fades into political noise may depend on how quickly India engages with the evolving digital finance landscape.