Financial analyst Aravind has urged the Reserve Bank of India (RBI) to establish a strategic crypto reserve. His proposal includes an initial $10 billion allocation to top assets like Bitcoin (BTC) and XRP, positioning India to embrace the global shift towards digital currencies.
A Blueprint for India’s Crypto Reserve
Aravind suggests India draw inspiration from the U.S., which recently mandated the creation of its own crypto reserve. This reserve prioritises Bitcoin and includes altcoins like XRP, SOL, ETH, and ADA.
India’s crypto reserve could follow a similar structure, eliminating the need to build a framework from scratch. By leveraging insights from the U.S. model, India can streamline its adoption of a strategic digital asset stockpile.
Why $10 Billion is a Modest Proposal
India’s foreign exchange (Forex) reserves currently exceed $650 billion, making a $10 billion allocation to crypto a relatively small step. Aravind views this as a low-risk investment to diversify India’s assets, especially as fiat currencies face potential devaluation.
The proposed fund could be sourced by exchanging a portion of existing Forex reserves, rather than tapping into new government funds. This move mirrors global trends, where countries are exploring crypto as a hedge against traditional economic risks.
Global Crypto Reserve Race Heats Up
The U.S. initiative, sparked by an executive order from Donald Trump, focuses on building reserves through crypto obtained via civil and criminal forfeitures. Unlike India’s proposed funding method, the U.S. approach does not draw from its budget but aims to expand its Bitcoin holdings through non-traditional means.
While nations like South Korea and Japan remain sceptical, countries such as Brazil view crypto as a strategic asset for future prosperity. India’s participation in this trend could signal its readiness to adapt to the evolving financial landscape.
The Road Ahead for India
Establishing a $10 billion crypto reserve could place India at the forefront of the digital currency revolution. By incorporating leading cryptocurrencies such as XRP and BTC, India could strengthen its economic resilience and capitalise on emerging opportunities in decentralised finance.
However, success will depend on regulatory clarity and strategic execution. As global powers debate the role of digital assets, India has the chance to align its financial policy with the demands of the digital age.
