Pradeep Bhandari, national spokesperson for India’s ruling Bharatiya Janata Party (BJP), has urged the government to consider launching a Bitcoin reserve pilot program. In an opinion piece for India Today, Bhandari argued that such a move would position India strategically in the evolving global financial landscape.
Citing examples like the United States’ development of a strategic Bitcoin (BTC) reserve and Bhutan’s state-backed mining efforts, Bhandari said these signals mark a growing global shift toward adopting digital assets. “This is not a blind leap,” he wrote. “It is a well-thought-out move to validate the legitimacy of digital assets.”
Bhandari emphasized that India, with its expanding renewable energy resources, is well-positioned to support a sovereign Bitcoin initiative. He added that regulatory clarity and a forward-looking approach could provide both economic resilience and international relevance.
Currently, India’s crypto sector operates under heavy taxation but lacks comprehensive regulation. Under Section 115BBH of the Income Tax Act, profits from virtual digital assets such as Bitcoin and Ethereum are taxed at a flat rate of 30%. Additionally, a 1% Tax Deducted at Source (TDS) is applied to crypto transactions exceeding ₹10,000 (around $115), regardless of profitability.
While acquisition costs can be deducted, the current law does not allow for any other expense deductions or loss offsets. This has created uncertainty in the market, with investors and businesses seeking clearer guidelines.
Bhandari also recalled India’s leadership in initiating a global crypto policy dialogue during its 2023 G20 presidency. Despite these efforts, he noted, other countries—such as the US, Russia, China, and Brazil—are moving quickly with national crypto strategies rather than waiting for international consensus.
He pointed to recent actions in three US states where Bitcoin has been approved as a reserve asset, and highlighted America’s plans to build its BTC reserve through budget-neutral purchases.
“India has a chance to lead,” Bhandari wrote. “A Bitcoin reserve pilot, backed by clear regulations, could drive innovation, attract investment, and enhance India’s economic resilience in the digital age.”
