Despite having one of the highest crypto adoption rates globally, India lacks a formal regulatory framework. One renowned financial expert suggests that strategic exposure to crypto assets like Bitcoin and Ripple-affiliated XRP token is essential for India’s future economic resilience.
As countries like the United States are building strategic crypto reserves, Aravind suggests India should too.
The Case For India Allocating $10B Of Forex Reserve To Crypto
Aravind took to the X social media platform on April 17 to urge India to immediately establish a strategic crypto reserve that would be run by the Reserve Bank of India (RBI). The pundit argued that India should begin with the four top cryptocurrencies, including XRP, Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
He said India could emulate the United States’ crypto reserve plan to create its digital asset stockpile. This implies that India doesn’t have to develop its crypto reserve from scratch, as it can rely on the US’s already existing structure.
Aravind recommends India kick off its reserve with a minimum allocation of approximately $10 billion, which is a modest figure considering India’s enormous foreign exchange reserve. The country’s forex reserve currently stands at nearly $700 billion, per data from Trading Economics. As such, he believes creating a crypto reserve with a $10 billion minimum allocation is not a big deal for India.
He further pointed out that the Indian government could raise money by exchanging some of its forex, which is mainly held in “soon to be weak” fiat currencies.
Trump’s Bitcoin Reserve Order
It’s pertinent to mention that Aravind has been urging India to establish a strategic crypto reserve, particularly after United States President Donald Trump signed an executive order authorizing the creation of a U.S. Strategic Bitcoin Reserve and a separate Digital Asset Stockpile consisting of digital assets other than Bitcoin (namely Ether, Ripple’s XRP, Solana, and Cardano’s ADA).
While Aravind calls for India to convert some of its forex reserves to crypto, the US intends to build its BTC reserve using coins already owned by the US government, specifically assets forfeited through criminal or civil procedures. The US is exploring several “budget-neutral” methods to get more Bitcoin, including from tariff earnings.
