India’s Bitcoin crossroads: Will it add BTC to national reserves?
As the global trend toward Bitcoin as a reserve asset grows, India finds itself at a critical juncture. The US has initiated a Strategic Bitcoin Reserve, funded by confiscated assets, while countries like El Salvador and Bhutan have made significant investments in Bitcoin for various strategic purposes. India aims for a $5-trillion economy and exhibits strong fintech adoption and digital infrastructure, making it a candidate for integrating Bitcoin into its financial strategy. However, regulatory hurdles exist, with current taxes and bans complicating the environment. Notable political support is emerging, suggesting a potential shift. India must consider risks of volatility, energy requirements, and environmental impact in formulation of Bitcoin reserves. Lessons from Bhutan's renewable energy mining, El Salvador’s integration missteps, and the Bahamas' CBDC challenges emphasize the need for cautious, well-planned approaches to digital asset management, focusing on sustainability and public trust.
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