Now, imagine that conversation happening not at a dinner table, but inside India’s central bank or finance ministry. The regret isn’t about an individual’s lost opportunity, but about our failure to act as a nation. India, often touted as one of the fastest-growing economies and a future global powerhouse, has yet to secure its stake in the digital asset revolution. By not investing in cryptocurrencies, India risks missing out on one of the most asymmetric financial opportunities of the century.

We have a choice to make: we can either start gradually building strategic cryptocurrency reserves now, leveraging digital assets for diversification and as hedges against financial uncertainty, or wait until these assets become too difficult to accumulate at scale.

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Cryptocurrencies aren’t an experiment anymore. While Bitcoin is the most widely adopted, making it the primary example in this discussion, the broader argument applies to cryptocurrencies as a whole. The Bitcoin network has been operational for over 99.98% of the time since its inception in 2009. Cryptocurrencies have survived wars, regulatory crackdowns, and multiple financial crises. If you had bought Bitcoin at any point and held it for any period of four years, history shows you would have never lost money. Fast forward to the present, and we see major institutions like BlackRock, sovereign wealth funds, and even some national governments securing their exposure to cryptocurrencies as part of their long-term economic strategies.

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Unmatched in contemporary financial history, Bitcoin has increased in value by almost 200X within the past ten years alone. For context, this performance outpaces even the most successful stocks of the last decade. Even NVIDIA grew about 50X and Apple about 10X during the same period. If another asset class showed even close to these returns, we would be stockpiling it as if there were no tomorrow and considering it the ultimate source of value. So, why do we hold cryptocurrencies to such different and higher standards? Does the skepticism still make sense?

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There is no denying the fact that the crypto space has seen various scams, rug pulls, meme coins, and bad actors, just like any emerging financial system throughout history. That’s exactly why regulation is necessary and long overdue, to protect investors and ensure responsible adoption. But none of this takes away from the fundamental appeal of cryptocurrencies.

So, here’s the real question… If individuals, corporations, and even some governments are leveraging cryptocurrencies as a strategic asset, why shouldn’t India do the same?

India is a fast-growing economy that is deeply integrated into global trade and exerts sizable influence in the global economy. Despite this, India does not have the privilege of a global reserve currency like the US dollar. Consider this: India represents over 17% of the global population and contributes approximately 7% of global GDP, yet remains vulnerable to external economic shocks. While we have built a strong and well-functioning financial system, our reserves remain concentrated in traditional assets like gold and foreign exchange. A strategic cryptocurrency reserve could serve as a forward-looking hedge against future financial uncertainty.

As the world’s fifth-largest economy with over $600 billion in forex reserves, India’s economic decisions carry global weight. A strategic cryptocurrency allocation would not only diversify our national reserves but could potentially reduce our vulnerability to US dollar fluctuations and provide a hedge against global monetary instability.

Diversification: The Age-Old Wisdom That Still Holds True

Ask any central banker, fund manager, or financial advisor, and they will all agree that diversification is key to successful investing. You don’t put all your eggs in one basket, and you certainly don’t bet the future of an economy on a single asset class. India has always taken a diversified approach, including gold, foreign exchange reserves, and a mix of assets to weather economic storms. But in a world that’s rapidly digitizing, are we really diversified if we’re ignoring digital assets? This becomes particularly relevant as these assets tend to have little correlation with the performance of traditional assets.

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So, let’s get one thing clear: Bitcoin isn’t the new digital gold, nor is it here to replace gold. It’s an evolution of value, bringing new utility and possibilities that gold never needed to offer.

Gold and Bitcoin share fundamental traits; both are scarce, resilient, and serve as hedges against uncertainty in different ways. Gold’s value is rooted in tradition and history, while Bitcoin’s is defined by its fixed supply and its digital, decentralized nature.

But they serve different purposes. Gold is stable, tangible, and time-tested. Bitcoin is borderless, programmable, and built for a digital economy. Bitcoin offers properties that gold cannot match: it can be transferred anywhere in the world in minutes, divided into microscopic fractions, and secured with cryptographic protocols that make theft or confiscation virtually impossible with proper security practices. One preserves value; the other expands its possibilities. If gold is the anchor that keeps wealth steady, then cryptocurrencies are the bridge to the financial future. Neither needs to replace the other; they need to work together.

The US Is Making Big Crypto Moves… Will India Catch Up or Lag Behind?
While we debate whether digital assets deserve a place in sovereign reserves, the United States is already making decisive moves. President Donald Trump recently signed an executive order to establish a strategic Bitcoin reserve, signaling a significant shift in how nations perceive and utilize digital assets. He has even joked about solving America’s deficit with Bitcoin! That might be a stretch, but what’s clear is that they’re taking this seriously.

India stands at a unique geopolitical crossroads, with the opportunity to chart its own path between China’s crypto prohibition and America’s increasing embrace. With our strategic position in the Indo-Pacific region and our growing economic influence, India’s approach to cryptocurrency reserves could become a model for other emerging economies while strengthening our financial sovereignty.

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Meanwhile, we’re seeing entire publicly listed companies built around Bitcoin as a core asset. Take Michael Saylor’s MicroStrategy (now Strategy), which started as a software firm and has now become a Bitcoin powerhouse, holding over $42 billion worth of BTC. This strategy has paid off handsomely. MicroStrategy’s stock has appreciated by over 1,500% since launching its Bitcoin treasury strategy in August 2020. It’s no longer just an investment for some; it’s the foundation of an entire corporate strategy. Countries like El Salvador have adopted Bitcoin as legal tender. According to Chainalysis’ 2023 Global Crypto Adoption Index, India ranks among the top 10 countries globally for cryptocurrency adoption!

If the US and large corporates are preparing for a world where digital assets play a major role in sovereign strategy, why are we still waiting on the sidelines? China tried banning Bitcoin. It didn’t work. The US is embracing it. What’s going to be our move?

The Rising Utility of Cryptocurrencies
An argument that keeps resurfacing is that ‘Crypto is just speculation.’ But reality tells a different story. Digital assets aren’t just another investment class; they’re shaping industries in real-time.

Take payments: Companies like Microsoft, Starbucks, and AT&T now accept Bitcoin and stablecoins for transactions. The financial system is shifting, whether we like it or not.

Look at investment vehicles: The US’ approval for Bitcoin ETFs has made it easier for institutions to enter the market. Within the first three months of approval, US Bitcoin ETFs attracted over $12 billion in inflows, demonstrating massive institutional demand. More liquidity, more mainstream adoption.

Think about remittances: Millions of people send money across borders every day. Crypto allows them to do it faster, cheaper, and without higher transaction costs, especially in regions with underdeveloped financial markets. The World Bank estimates that remittance fees average 6.4% globally, while cryptocurrency transfers can reduce this to under 1%, saving developing economies billions annually.

India receives over $130 billion in yearly remittances. That’s roughly 15% of all remittances worldwide! Cryptocurrency-based transfers could save Indian families billions in fees while dramatically reducing settlement times from days to minutes. This represents both an economic and social benefit for millions of Indian households.

Then there’s DeFi (Decentralized Finance). The total value locked in DeFi protocols exceeds $100 billion, demonstrating significant market confidence in these new financial systems. The future of finance isn’t being debated; it’s being built on blockchain. And as the real-world utility of digital assets continues to grow, so does their value.

A Smarter Approach: Start Small, Scale Fast
The argument is about making a strategic, forward-thinking move that positions India at the forefront of the digital economy.

The approach? Start small, think big. A 1-2% allocation in digital assets is a measured step, not a gamble. Track its performance, take cues from early movers like the US, El Salvador, and even large companies like MicroStrategy, and refine the approach as we go. Encourage Indian financial institutions to experiment with crypto-backed financial instruments in a limited way. Instead of waiting on the sidelines, we can proactively shape a regulatory framework that fosters innovation while ensuring stability.

This approach aligns perfectly with India’s broader digital transformation goals under the Digital India initiative. Just as we’ve digitized payments, government services, and identification systems, a measured approach to cryptocurrency reserves represents the next frontier in our digital leadership journey.

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Why Crypto Reserves Make Sense for India

India must think about how we want to position ourselves for the future. Holding digital assets could give India an edge by reducing reliance on external financial systems and insulating us from geopolitical and monetary shifts. It’s about economic sovereignty in a world where financial landscapes are changing fast.

We’ve seen this playbook before. India wasn’t the first mover in digital payments, but we built UPI into a system that the world now looks up to. The same can be done with sovereign crypto reserves… not by following, but by leading. The long-term appreciation of digital assets has been staggering. Cryptocurrencies have outpaced traditional assets in returns, proving that they’re more than just a gamble. A small allocation today could translate into massive financial strength in the coming decades.

India possesses another unique advantage: the world’s largest pool of technology talent. Our engineers and developers are already contributing to blockchain projects globally. A national strategy for cryptocurrency reserves would not only benefit from this expertise but could potentially create a new sector of high-skilled jobs and innovation hubs across the country, strengthening India’s position as a global technology leader.

Crypto isn’t going away. The real question is… will India be a leader or a follower?

While the Reserve Bank of India has expressed valid concerns about cryptocurrencies in the past, a carefully regulated strategic reserve approach addresses these concerns while capturing the benefits. Many countries, including Singapore and Japan, have demonstrated that thoughtful regulation can mitigate risks while fostering innovation. India has the regulatory sophistication to thread this needle successfully.

We can either start building a strategic reserve today, or in five years, we’ll be at another dinner party, hearing someone say, “If only India had bought Bitcoin back in 2025…” The time to act is now. Let’s not wait until it’s too late.

About the Author
Anurag Arjun, co-founder of Avail, is a seasoned entrepreneur who has founded several successful startups across diverse industries, including cash flow lending, regulatory tech, and blockchain infrastructure. He entered the blockchain space in 2017 with the co-founding of Matic Network, which evolved into Polygon Labs — one of the most prominent platforms for scaling Ethereum.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

Earlier this month, U.S. President Donald Trump announced the creation of the Strategic Bitcoin (BTC 0.31%) Reserve and the United States Digital Asset Stockpile. The former will hold Bitcoin — no surprises there. The latter will hold four more of the largest cryptocurrencies: Ethereum (ETH 1.64%), XRP (XRP -0.34%), Solana (SOL 1.82%), and Cardano (ADA -0.24%).

The fact that the U.S. is stockpiling crypto is exciting news for crypto investors. But are these good cryptocurrency investments? Let’s take a closer look at each one.

1. Bitcoin

Bitcoin is the original cryptocurrency and has also been the most successful. At the time of writing, its market cap is $1.7 trillion, larger than that of every other cryptocurrency combined. Over the last three years (as of March 19), Bitcoin’s price has increased by 98%, well ahead of the S&P 500‘s 27% return.

While Bitcoin was intended as a decentralized digital currency, transactions are too slow and expensive for it to work as a payment method. Processing times generally range from 10 minutes to over an hour, depending on network congestion, and fees are around $1 per transaction.

Despite that, Bitcoin has caught on as a digital store of value, or “digital gold.” The supply is capped at 21 million Bitcoin, adding an element of scarcity to it. If you’re looking for a way to hedge against inflation or add cryptocurrency to your portfolio, Bitcoin is worth considering.

2. Ethereum

Ethereum is the second-largest cryptocurrency by market cap, and it became popular through introducing smart contracts. A smart contract is a program built into a cryptocurrency’s blockchain network to record transactions.

Developers can use smart contracts to launch decentralized apps (dApps). This gives Ethereum a wide range of uses, including decentralized finance (DeFi) services, such as crypto lending platforms, blockchain gaming, and launching new crypto tokens.

Because Ethereum was the first to offer smart contracts, it has a large lead in terms of market share. According to DefiLlama, Ethereum currently has $46 billion in total value locked into its DeFi applications, the most of any blockchain.

On a negative note, Ethereum’s performance lags behind other smart contract blockchains. The average transaction fee is $0.19 as of March 19, compared to $0.00025 for rival Solana. Ethereum has also lost 34% of its value over the last three years. You’re better off avoiding Ethereum until it proves that it can reverse this downward trend.

3. XRP

XRP is the native cryptocurrency for Ripple, a blockchain designed as a cross-border payment solution. The current system of choice for international payments, the ​​Society for Worldwide Interbank Financial Telecommunications (SWIFT), can take three to five days for international banking transfers. Fees generally cost $15 to $50, depending on the banks involved.

On the Ripple blockchain, transactions process within four to five seconds for a fee of 0.00001 XRP, a fraction of a cent. In addition to being used for its minimal transaction fees, XRP is also a bridge currency used to facilitate international transfers.

With a real-world use case, XRP is one of the stronger crypto investments currently available. Over the last three years, it has topped every other cryptocurrency on this list with its 187% return. Its biggest headwind since 2020 has been a lawsuit from the Securities and Exchange Commission (SEC), but on March 19, RippleLabs CEO Brad Garlinghouse announced that the SEC had dropped the lawsuit.

4. Solana

Solana is a competitor to Ethereum, as it also provides developers with a platform to launch dApps. The difference is Solana’s unique proof-of-history system for validating transactions, which makes it a far more efficient blockchain.

As mentioned above, the average transaction fee on Solana is just $0.00025. It processes over 4,000 transactions per second (tps). In comparison, Ethereum processes about 17 tps, because it hasn’t developed a fast method to validate transactions like Solana has.

Like all cryptocurrencies, Solana is a high-risk, volatile investment. But it’s up 39% over the last three years, and its speed and low costs should continue attracting developers to the Solana ecosystem.

5. Cardano

Cardano is another Ethereum competitor that supports smart contracts and allows for the development of dApps. It helped popularize the proof-of-stake system, where people who own a cryptocurrency can pledge their tokens to be part of the transaction validation process and earn rewards. The proof-of-stake system has minimal energy requirements, and even Ethereum adopted it in 2022.

One of the unique things about Cardano is the developers’ dedication to using peer review and evidence-based research. This hasn’t always been to its benefit, though. Cardano’s development has been notoriously slow. For example, it didn’t introduce smart contracts until 2021.

Cardano’s price has decreased by 18% in the last three years. As with Ethereum, it’s best to see if Cardano can build any forward momentum before committing your money to it.

Don’t base your portfolio on the crypto reserve

Just because the U.S. government will be stocking up on these five cryptocurrencies doesn’t mean you should invest in all of them. Cryptocurrency is a risky, unproven asset class. Two of the cryptos on this list, Ethereum and Cardano, have lost value over the last three years. Even though the others have done well, they’re still highly volatile.

As far as crypto investments go, Bitcoin is the safest option, relatively speaking. It’s the most well-known cryptocurrency, and it has been the largest since the very beginning. If you’re looking for cryptocurrencies other than Bitcoin, XRP and Solana are two standout projects. With Bitcoin, XRP, and Solana, you could have a solid crypto portfolio that covers multiple use cases.

No matter which cryptos you choose, be careful about your asset allocation. Because of the risk involved, cryptocurrency shouldn’t be more than 5% to 10% of your portfolio. Use the rest to invest in stocks, bonds, and other stable assets.