Will India become the first superpower to start a ‘strategic Bitcoin reserve’?

A strategic Bitcoin reserve held by a country. It’s a plan originally launched by the United States, but given that some of his advisors thought a Bitcoin reserve would be detrimental to the US dollar, Trump abandoned the idea and opted for a ‘crypto reserve’. Another superpower, India, might just do it though.

Bhutan

In an article in India Today, Pradeep Bhandari, spokesperson for Prime Minister Modi’s Bharatiya Janata Party (BJP), advocated creating a Bitcoin reserve for India. He cited the United States, which is starting a ‘strategic crypto reserve’, as an example, as well as the mini-state of Bhutan, which became rich by mining Bitcoin through the use of hydroelectricity.

In India, the use of crypto is already very popular. Not only as an investment but also for expats (who usually work in Western Europe or the United States) to send digital money back home to their families. Stablecoins such as Tether are increasingly being used for this purpose.

The BJP is now toying with the idea of ​​creating a ‘strategic Bitcoin Reserve’ and explicitly points to the success of the mini-state of Bhutan. The small Asian country is now in the top 5 of largest Bitcoin holders among countries because it mined Bitcoin using the hydroelectricity that it had available for free thanks to its location in the mountains. The BJP is also playing with this idea.

Whether it will become reality remains to be seen, at the moment it is just an idea that is being floated, but if India were to start creating such a reserve, the other superpowers might get interested as well.