The US Strategic Bitcoin Reserve, launched in January 2025 under President Donald Trump, has elevated digital assets to a global stage. Valued at more than $20 billion as of June 2025, it underscores Bitcoin’s emerging role as a store of value.
For India, this shift invites reflection: could Bitcoin, thoughtfully integrated, enhance our economic toolkit?
The US initiative currently repurposes 200,000 seized Bitcoins as a buffer against inflation, a strategy cemented by last month’s White House Crypto Summit with clearly articulated plans to buy more Bitcoin through budget-neutral means, thereby expanding its Bitcoin reserve holdings in the coming times without burdening taxpayers.
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.
This isn’t a reckless pivot—it’s a calculated step toward embracing digital assets’ legitimacy. For India, observing this offers a lens to assess whether Bitcoin could diversify our reserves, complementing traditional holdings in an uncertain global economy.
Bhutan & Bitcoin: A Regional Perspective for India
Bhutan provides a regional case study. Since 2021, it has mined Bitcoin using hydropower, amassing a reserve valued at over $1 billion by May 2025. What began as a response to tourism’s decline has now evolved into a mechanism supporting public services and sustainability goals.
India, with its vast renewable energy potential, has the capacity to adapt such a model. However, scalability and regulatory clarity remain significant challenges. Bhutan’s approach suggests that digital assets can contribute to economic stability—a notion worth evaluating.
What Makes Bitcoin Stand Out?
Bitcoin is unique in that it lacks a central issuer—it is classified as a commodity rather than a security by US regulators. Like gold, no government or institution controls it. This decentralisation underpins three key traits: scarcity, liquidity, and transparency.
Only 21 million Bitcoins will ever exist. This finite supply contrasts sharply with fiat currencies or assets that face dilution and inflation. While similar to gold in scarcity, Bitcoin operates at digital speed, trading globally 24/7 with unmatched liquidity. In contrast, gold remains physically bound—less fluid in everyday use.
Bitcoin’s blockchain, a public and tamper-proof ledger, allows all transactions to be verified by anyone. This transparency addresses many concerns about traditional financial opacity.
These characteristics—finite supply, constant liquidity, and verifiability—combine to make Bitcoin a modern counterpart to gold. While gold is static and physical, Bitcoin is dynamic and digital. With its value surpassing $100,000, it has earned the “digital gold” moniker through both analogy and practical merit.
Moreover, Bitcoin is programmable and portable. It can be transferred instantly across borders without intermediaries, secured with advanced cryptography. In a digital-first world, it aligns with emerging generational attitudes about money and value.
The Role of Regulation
Regulation is critical. India’s current approach—taxation without clear legal status—limits potential innovation and adoption. During its G20 presidency in 2023, India led the formation of a crypto policy working group with the IMF to shape global norms. However, while those recommendations evolve, other major economies—including BRICS members like Russia and China, as well as the US—are moving ahead decisively.
The IMF’s classification of Bitcoin as a capital asset reinforces the urgency of a coherent regulatory strategy. Clear, thoughtful regulations would enable responsible innovation while protecting investors. It would also help attract institutional interest and create a framework for Bitcoin to contribute meaningfully to India’s macroeconomic objectives.
India now stands at a crossroads. A measured strategy—perhaps starting with a Bitcoin reserve pilot—could strengthen economic resilience and signal forward-looking policy intent. As the US expands its reserve and Bhutan charts a distinct regional path, India has a unique opportunity to lead in the era of digital assets.
