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India’s Debt Woes
However, India’s domestic debt remains a significant obstacle in the country, hindering its full potential. The current debt-to-GDP ratio is above 56%, and the total domestic debt stands at a whopping 151 trillion Indian Rupees ($1.8 trillion). In addition to the domestic situation, the country owes $736 billion in external debt.
While the country’s figures are significantly better than those of some of its regional and geopolitical rivals, the debt situation means that the country continues to face high levels of poverty and inflation. There have been numerous solutions proposed over the years, including bulk buying of Gold, of which India has the highest number of users.
One pro-crypto tech entrepreneur, Pushpendra Singh, believes that the key to success here is a Bitcoin reserve. He tweeted:
“India should seriously consider building Bitcoin reserves, it’s the fastest path to manage and repay debt. The nation’s debt burden is rising every single day.”
 
With around 447,000 followers on X (formerly Twitter), including former Binance CEO Changpeng Zhao, Singh is an influential Indian voice on crypto and AI. He is an avid advocate of Bitcoin and believes states should take the lead in owning the digital asset to help resolve the global inflation crisis, which the COVID-19 pandemic has exacerbated.
The Future
This is not the first time this suggestion has come forward in the South Asian country. Back in July, a member of the current ruling party of India suggested the creation of a major Bitcoin reserve in the country to “project modernity” and ensure “economic resilience”.
While the jury is still out on whether or not the government of the country has made up its mind regarding such a reserve, other countries are taking a lead in this race. El Salvador, a Central American country, has become a regular mainstay of the crypto news cycle by establishing a Bitcoin reserve, despite the amount itself being relatively small compared to what countries like India can manage.
Then there is the curious case of crypto legalization in the country. India is perhaps the only country in the world where digital currencies are taxed, but not regulated. As a result, the tens of millions of crypto users in the country are forced to engage in clandestine trading, and much of the crypto market remains untaxed, with its potential underutilized.
Source: https://zycrypto.com/india-may-consider-state-bitcoin-reserve-to-tackle-debt-woes/