BJP Spokesperson Calls for Bitcoin Reserve Pilot to Strengthen India’s Economic Resilience

India may be inching closer to a policy crossroads on crypto. In a bold policy suggestion that could reshape the country’s stance on digital assets, Bharatiya Janata Party (BJP) national spokesperson Pradeep Bhandari has proposed a sovereign Bitcoin reserve pilot program.

In an op-ed published in India Today, Bhandari argued that such a move would be “a calculated step toward embracing digital assets’ legitimacy.”

Citing the United States’ plans to expand its Bitcoin reserves and Bhutan’s state-backed mining initiatives, Bhandari positioned India as uniquely suited to leverage its growing renewable energy capacity to establish a state-level Bitcoin strategy.

“This isn’t a reckless pivot,” he wrote. “It’s a calculated step toward embracing digital assets’ legitimacy.”

India’s relationship with crypto remains fraught with contradictions. Digital assets like Bitcoin and Ether are taxed under a stringent regime — a 30% flat tax on capital gains and a 1% tax deducted at source (TDS) on transactions over approximately $115 — but they operate in a regulatory vacuum. While these measures generate revenue, they offer little clarity for users or industry players navigating the crypto landscape.

Under Section 115BBH of India’s Income Tax Act, purchase costs can be deducted from gains, but losses and other business expenses cannot. The tax-heavy yet unregulated framework has made India one of the least hospitable environments for Web3 startups, pushing several to relocate abroad.

Bhandari’s comments come at a time when the global tide is turning. During its G20 presidency in 2023, India helped form a crypto working group with the International Monetary Fund. But countries like the US, Brazil, and China are already accelerating their adoption, often without waiting for multilateral consensus.

The BJP leader highlighted that three US states have already approved Bitcoin as a reserve asset and noted Washington’s plan for budget-neutral BTC purchases. In contrast, India, despite its leadership in international policy forums, risks falling behind in the innovation race.

Calling for regulatory clarity and a forward-looking framework, Bhandari urged policymakers to consider a pilot project for Bitcoin reserves, not just as a financial hedge, but as a signal of India’s readiness to embrace technological shifts.

“India stands at a pivotal juncture,” he concluded. “A measured Bitcoin strategy — perhaps a reserve pilot — could strengthen economic resilience and project modernity.”

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Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by the Editorial Team.

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