India to Introduce Bitcoin Central Bank Depository?
India, a rapidly evolving digital economy, has taken a significant step in regulating cryptocurrencies. The country has imposed a flat 30% tax on crypto gains and a 1% Tax Deducted at Source (TDS) on transfers exceeding ₹10,000, with no loss set-off, as announced by the government. This move marks a cautious approach towards bitcoin and other cryptocurrencies, given the large user base and the prohibition of crypto as legal tender for payments.
Despite the regulatory framework, the question of whether India will establish a bitcoin reserve remains unanswered. One advocate for such a move is Pradeep Bhandari, who urges the nation to build a bitcoin reserve. Bhandari views this proposal not as a reckless pivot, but a calculated step to embrace digital assets.
Support for the proposal is not limited to Bhandari. CoinDCX CEO, Sumit Gupta, has also expressed his backing for the idea of a bitcoin reserve. The evolving stance on crypto in India, with its taxation and compliance framework, has opened up discussions about the potential benefits of testing bitcoin as a sovereign asset.
Cryptocurrencies are legal to hold and trade in India, but they are not recognised as legal tender. This legal status has led some experts to suggest that India should consider testing bitcoin as a sovereign asset. The possibility of a bitcoin reserve speaks volumes about the country's growing interest in digital assets and its potential role in the global crypto landscape.
However, the identity of the politician who initially advocated for a bitcoin reserve in India remains unclear in the provided search results. The future of a bitcoin reserve in India remains uncertain, but the discussions and support it has garnered are a testament to the country's openness to exploring the potential of digital assets.
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