Key Takeaways
- Pradeep Bhandari of India’s BJP calls for a sovereign bitcoin reserve pilot.
- India currently taxes bitcoin at 30% but lacks clear regulatory frameworks.
- Other major nations are advancing bitcoin strategies without waiting for global consensus.
Pradeep Bhandari, spokesperson for India’s ruling Bharatiya Janata Party (BJP), has called on the Indian government to consider launching a bitcoin reserve pilot.
In an article for India Today, Bhandari argued that initiating such a program would be a strategic move for economic resilience, especially as global finance increasingly embraces bitcoin as a reserve asset.
Bhandari pointed to Bhutan’s state-led mining operations and the United States’ growing strategic bitcoin reserves as examples of this trend.
He emphasized India’s expanding renewable energy sector as a potential strength for a sovereign bitcoin strategy.
Bhandari wrote:
This isn’t a reckless pivot. It’s a calculated step toward embracing digital assets’ legitimacy.
India’s unclear bitcoin regulation
Currently, India’s approach to bitcoin is to tax it heavily without providing regulatory clarity.
Profits from selling bitcoin and other virtual digital assets are taxed at a flat 30% rate under Section 115BBH of the Income Tax Act.
However, there is no clear framework for regulation, and only purchase costs can be deducted—other expenses and losses are excluded. Additionally, a 1% Tax Deducted at Source (TDS) applies to all bitcoin transactions above $115.
Bhandari noted that, during India’s G20 presidency in 2023, the government coordinated a global digital asset working group with the IMF.
However, he observed that other nations, including the US, Russia, China, and Brazil, are moving forward with bitcoin initiatives without waiting for global consensus.
To track country-level bitcoin holdings, visit this page.
A call for regulatory clarity and innovation
Bhandari concluded that India should provide regulatory clarity, starting with a sovereign bitcoin reserve initiative.
He argued this would bring transparency, oversight, and innovation while protecting investors.
Bhandari wrote:
India stands at a pivotal juncture. A measured Bitcoin strategy — perhaps a reserve pilot — could strengthen economic resilience and project modernity.
