India is evaluating a landmark proposal to establish a national Bitcoin reserve, signaling potential regulatory evolution despite the absence of a comprehensive cryptocurrency framework.
A senior member of the ruling Bharatiya Janata Party recommended the strategic initiative, positioning it as a tool for economic security and digital asset innovation. This proposal emerges while India maintains a taxation policy on Bitcoin transactions without overarching legislation for the sector.
The concept draws inspiration from international models such as Bhutan’s $1 billion Bitcoin holdings, presented as a template to drive economic benefits and foster broader institutional adoption. Analysts caution, however, that India’s regulatory vacuum introduces significant implementation risks
Proponents argue that a state-managed Bitcoin reserve could enhance economic resilience and technological advancement, though its success depends on meticulous regulatory structuring to address market volatility and compliance challenges.