Proposal for a National Bitcoin Reserve
Pradeep Bhandari, spokesperson for India’s ruling Bharatiya Janata Party (BJP), recently sparked significant discourse in crypto and policy discussions by proposing that the Indian government contemplate the establishment of a strategic Bitcoin reserve. His insights, published in India Today, come amid India’s absence of a solid regulatory framework regarding digital assets.
International Context and Potential
Bhandari pointed to global trends such as the increasing U.S. Bitcoin acquisition and Bhutan’s state-endorsed block reward mining efforts as indicators of a worldwide shift toward digital finance. He emphasized that India’s growing renewable energy sector could serve as a foundational asset for a national digital asset strategy, ultimately enhancing the nation’s economic security.
India’s Unique Position
“India is at a crucial crossroads. A prudent Bitcoin initiative—perhaps starting with a reserve pilot—could bolster economic resilience. As the U.S. progresses and nations like Bhutan make adjustments, India has a distinct opportunity to take the lead,” Bhandari stated. “Regulatory clarity is essential as India’s crypto policy remains taxed but unregulated.”
Learning from Bhutan
Bhandari highlighted Bhutan as an instructive regional case, noting that the country has utilized its hydropower resources for Bitcoin mining since 2021. By May 2025, Bhutan had amassed a reserve worth over $1 billion, transforming a response to tourism decline into a strategy that supports public services and aligns with its sustainability goals.
Challenges Ahead
Despite the intriguing proposal, industry experts caution that India currently lacks a decisive policy framework or regulatory structure for digital assets. Without an organized approach, significant time may pass before India can genuinely consider establishing a national Bitcoin reserve. However, the introduction of this concept can stimulate national dialogue and scrutiny.
Need for Regulatory Clarity
Industry leaders acknowledge that while the notion of a Bitcoin reserve may be appealing, it remains inconsistent with India’s current regulatory environment, which favors a digital rupee (CBDC) over private cryptocurrencies. A more pragmatic immediate goal could be crafting regulations for stablecoins, which function similarly to digital prepaid instruments currently regulated in India. Such guidelines could pave the way for innovation in digital finance without compromising monetary sovereignty.
