What began as a libertarian experiment in 2009 is now knocking on central banks' treasury departments' door around the globe. Bitcoin, once pooh-poohed by policymakers as unstable and unreliable, is starting to gain entry into government reserves, a development that might reshape global monetary dynamics. The United States, the Czech Republic, and other countries are experimenting with digital assets as part of national policy.
These initial steps reflect a tectonic movement in the way value gets stored, secured, and signalled in an increasingly dynamic digital economy. And as the financial universe turns, India stands at a crossroads, hesitant, watching, and facing increasing pressure to stake its claim.
The US has taken arguably the most audacious step this far. On March 6, 2025, President Donald Trump signed an executive order creating a Strategic Bitcoin Reserve, pooling digital assets confiscated by law enforcement into a national fund. Once seen as contraband, the crypto assets are now being legitimised into an official state policy, not only as emergency wealth, but also as a possible counterweight to inflation and global monetary volatility.
This move is not symbolic. It is a real-world application of digital value at the level of government policy, an acknowledgement that Bitcoin, while volatile, could be a long-lasting hedge in uncertain times geopolitically. Nations such as the Czech Republic are also said to be considering Bitcoin as a part of their central bank reserves; if enacted, it would be the first for any Western central bank.
Global macroeconomic issues, from inflation in conventional fiat currencies to rising geopolitical rivalries, have driven a quest for alternative stores of value. For some governments, Bitcoin offers a singular combination: decentralisation, fixed supply, and global liquidity. It's unpegged to any single economy, immune to political manipulations, and available in ways gold and commodities might not be.
Though these tests are in their early stages, they indicate increasing confidence in digital repositories of value, especially in a time when central bank actions have been criticised for quantitative easing and money printing.
India's experience with crypto has been one of public excitement and regulatory wariness. Even as it hosts the second-largest user base for cryptos globally, India's government has reportedly expressed alarm about the systemic risks that crypto assets pose, describing them as 'macroeconomic stability.'
Conversely, the Securities and Exchange Board of India (SEBI) seems more liberal, suggesting a multi-regulatory framework for regulating crypto trade. This internal conflict mirrors India's wider dilemma: How to encourage innovation while retaining monetary sovereignty.
India's cryptocurrency is most accurately characterised as taxation without endorsement. A 30 percent tax on profit from digital assets and 1 percent TDS on trade has been imposed by the government, burdening traders with compliance but providing scant protection or acceptance. Additionally, digital assets are now brought under the Prevention of Money Laundering Act (PMLA), introducing a law enforcement aspect without regulatory clarity.
Union Finance Minister Nirmala Sitharaman has continually said that global cooperation is necessary to effectively regulate cryptocurrencies. But while other nations are developing frameworks and investigating sovereign reserves, India's wait-and-watch policy may be put to the test shortly.
India's reluctance might have far-reaching consequences. While the US and others start to institutionalise Bitcoin, international financial architecture might slowly adapt to accept digital assets as integral parts of national security and trade policy. If India stays away, it risks losing first-mover benefits in crypto infrastructure, financial innovation, and international influence in shaping digital standards.
Latest statements by Economic Affairs Secretary Ajay Seth indicate New Delhi is rethinking its approach in the face of the changing world. Whether this will come to fruition remains to be seen, but time is no longer an option.
The inclusion of Bitcoin in government coffers one day will be regarded as a milestone in the history of money, not because Bitcoin supplants fiat currencies, but because it exists alongside them in strategic balance. It is more than a technological revolution; it's a redefinition of trust, control, and resilience in the financial system.
India sits at the precipice of this change. With its talent for technology, investor interest, and geopolitical influence, it is positioned to lead. But leadership calls for clarity, not confusion. As global financial powers reshape the map of economic sovereignty, India needs to determine if it wants to co-author the future or be left responding to it.