India’s ruling party spokesperson urges pilot for national Bitcoin reserve

A spokesperson for India’s ruling party, the Bharatiya Janata Party (BJP) has urged the government to explore a sovereign Bitcoin reserve as the regulatory framework for digital assets in the country remains in limbo. According to a June 26 article titled “US Bitcoin Reserve signals a shift: An opening for India,” BJP national spokesperson Pradeep Bhandari called for India to consider launching a Bitcoin reserve pilot. “Three US states have now passed legislation authorising the deployment of public funds to purchase and hold Bitcoin as a reserve asset, with more expected to follow. These measures reflect a growing recognition of Bitcoin’s potential to bolster fiscal resilience and serve as a hedge in uncertain economic conditions,” Bhandri wrote. He argued that creating a national Bitcoin reserve would align India with emerging global trends and also strengthen its economic resilience. In his article, Bhandari drew attention to Bitcoin’s properties as a decentralized asset with fixed supply, high liquidity, and transparency, and even called it “digital gold” while stressing that it could act as a hedge in uncertain economic environments. “The IMF’s recent classification of Bitcoin as a capital asset further sharpens the need for direction. Clear regulation could bring both transparency and the required oversight to this emerging asset class—enabling responsible innovation while protecting a rising investor class,” he noted. Further, Bhandari pointed to Bhutan’s Bitcoin strategy, which uses hydropower to mine and accumulate digital assets. Since 2021, Bhutan has built a reserve exceeding $1 billion, which now supports public services and long-term sustainability goals. Drawing a parallel, he noted that India’s expanding renewable energy infrastructure positions it well to pursue a similar sovereign Bitcoin strategy aligned with its national interests. According to him, these initiatives would not be a “reckless pivot” but rather a “calculated step” toward embracing the legitimacy of digital assets. Regulatory clarity is key Bhandari also touched upon India’s heavily taxed, yet unregulated crypto market. Despite lacking a formal regulatory framework, cryptocurrency trading in India is taxed under Section 115BBH of the Income Tax Act at a flat 30%, along with a 1% Tax Deducted at Source (TDS) on all transactions above ₹10,000. Meanwhile, a long-promised policy discussion paper, initially expected after India’s G20 presidency, has faced repeated delays. Officials say it’s being “recalibrated” in light of global shifts, but no timeline has been set. Bhandari criticised this one-sided approach, calling for regulatory clarity that he believes is essential to “unlock” India’s full potential in the digital asset space. He recalled that during India’s G20 presidency in 2023, the government played a key role in coordinating a crypto-focused working group with the International Monetary Fund. Yet, while India awaits a broader consensus, Bhandari warned that others are not standing still. “While [India’s] recommendations will take their due course, we are seeing other jurisdictions, including Russia, China, and Brazil from the BRICS, and other G20 nations led by the US, race ahead—not pausing for consensus.” Bhandari concluded by urging policymakers to act decisively, arguing that delay could cost India both strategic and economic ground. “India stands at a pivotal juncture. A measured Bitcoin strategy—perhaps a reserve pilot—could strengthen economic resilience and project modernity,” Bhandari wrote, adding that India should consider this as a “unique opportunity to lead.” The post India’s ruling party spokesperson urges pilot for national Bitcoin reserve appeared first on Invezz

Source: Invezz