- Aravind has requested the Reserve Bank of India to invest $10 billion worth of its foreign exchange reserve in a cryptocurrency reserve with a focus on Bitcoin and Ripple.
- With institutions and banks experimenting or piloting even CBDCs and crypto reserves, India would find itself in the second league if it fails to come in with aggressiveness.
The Donald Trump playbook of issuing an executive order to develop a U.S. cryptocurrency reserve has already evolved into a global benchmark reference. The move widely anticipated to become America’s stranglehold on the financial space has already generated clamor for replication around other countries.
Among the voices calling for action is Aravind, a digital asset advocate. Taking to X, he advocated for India to use the Reserve Bank of India (RBI) as a vehicle to build a national crypto reserve that will include Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), and Solana (SOL).
According to Aravind, India doesn’t need to reinvent the wheel. Instead, it can model its reserve system on the structure already being developed in the U.S. He proposed a starting point of at least $10 billion for India’s digital asset reserve, suggesting the country exchange some of its foreign exchange reserves, which currently exceed $650 billion, into digital assets. “This is not a big deal for India,” he stated, emphasizing the relatively minor financial impact of $10 billion.
Interestingly, this isn’t the first time Aravind has voiced strong opinions on crypto’s global significance. Back in March, he stirred debate with a cryptic but pointed observation: “Bitcoin gives me CIA vibes all the time. There’s something about it that the U.S. is going to use to ensure continued financial dominance in the world.” While the Reserve Bank of India has traditionally approached crypto with caution, citing concerns over volatility, financial stability, and potential misuse, Aravind’s recommendation could signal a pivotal shift in the public conversation.
Global Crypto Reserves
Several countries have already tested or even adopted cryptocurrency reserves, with El Salvador leading the way in becoming the first country to embrace Bitcoin as a legal tender in 2021. El Salvador, under the leadership of President Nayib Bukele, now holds more than 6,000 BTC. While the U.S. government has not yet officially established a national crypto reserve, it currently holds 207,189 BTC. Other countries, such as the United Kingdom, also possess Bitcoin reserves, with the UK holding more than 61,000 BTC.
Bitcoin, “digital gold,” is a decentralized and secure asset that is viewed as an inflation hedge. Its fixed 21 million supply and resistance to centralized manipulation have made it a desirable commodity in times of economic turbulence.
On the other hand, XRP is famed for the swiftness of its cross-border payments and has collaborated with banks and Institutions like the Hidden Road that leverage its security, cost efficiency, and scalability. Today, Bitcoin sits at $84,537, after a 2.62% weekly rise.
Meanwhile, XRP has seen a 3.21% surge in the same time frame to trade at $2.07.
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