Indian Politician Pushes for Bitcoin Reserve as Global Adoption Grows
An influential Indian politician has called on the government to initiate a Bitcoin reserve pilot, signaling a growing interest in aligning India’s financial strategy with global crypto trends. The proposal comes amid accelerating Bitcoin adoption in the United States, where both federal and state institutions have begun integrating the digital asset into their fiscal frameworks.
The suggestion was made by a senior member of the ruling Bharatiya Janata Party, who highlighted the global momentum behind Bitcoin and the need for India to proactively engage with emerging financial technologies. According to him, India could explore using a portion of its surplus renewable energy, particularly from its growing solar and hydroelectric capacity, to mine Bitcoin and store it as part of the national reserves.
Currently, India permits cryptocurrency investment, but the regulatory environment remains uncertain. Digital assets are taxed at 30%, and all transactions above a certain threshold are subject to a 1% tax deducted at source (TDS). However, there is no formal recognition or comprehensive regulation of cryptocurrencies, creating a grey area that hinders institutional adoption. The politician emphasized that regulatory clarity would be essential before any Bitcoin reserve initiative could be launched.
He also drew attention to Bhutan’s government, which is reportedly mining Bitcoin using surplus hydroelectric power and quietly building up national reserves. He pointed to this model as one that India could adapt to its own energy and economic context. By doing so, India could establish a forward-thinking position in the global financial landscape while also making strategic use of otherwise wasted renewable energy.
Across the world, the United States has been aggressively moving toward Bitcoin integration. Several U.S. states have passed legislation to include Bitcoin as a treasury reserve asset, and federal agencies now hold large amounts of Bitcoin from asset seizures. U.S. President Donald Trump recently signed an executive order to formalize the creation of a national Bitcoin reserve, further signaling a shift in the country’s approach to digital assets.
Institutional investment in Bitcoin has also surged in the U.S., with financial giants expanding their crypto portfolios through exchange-traded funds (ETFs), custody services, and lending platforms. In a related development, U.S. regulators have begun allowing the use of Bitcoin as collateral for mortgage loans, marking a new phase of mainstream financial acceptance.
The Indian politician’s proposal aims to ensure India does not fall behind in what is rapidly becoming a global crypto arms race. He stressed that India must act with both caution and ambition, suggesting that a pilot program focused on Bitcoin reserves could provide valuable insights while minimizing systemic risk.
If adopted, the proposal would place India among a small but growing group of nations exploring the strategic use of Bitcoin at the sovereign level. As digital assets become more intertwined with global finance, such initiatives could play a role in shaping future economic resilience and innovation.
With global powers positioning themselves to benefit from the next wave of financial technology, India’s next steps may determine its place in the emerging digital economy.
