Sumit Gupta Urges Urgent Crypto Strategy for India Amid Global Digital Shift

Sumit Gupta, founder of CoinDCX, raised alarms over India’s lack of a clear crypto roadmap. On May 28, he flagged on the X platform about India’s vulnerability amid regional and global crypto developments. Sharing insights from C. Raja Mohan’s article in The Indian Express, Gupta emphasized the geopolitical use of digital assets. He said India leads in crypto adoption and innovation but still lacks a forward-looking policy. Gupta warned that without strong action, India risks missing the global financial shift. The article, titled “In India, needed, a crypto strategy”, highlights strategic moves by other nations, including Pakistan’s crypto alignment with a U.S.-linked firm. It urges India to prepare a robust, secure crypto strategy to match the fast-changing digital financial ecosystem.

Pakistan’s Crypto Pact and India’s Security Risks

Pakistan recently signed an MoU with World Liberty Financial Inc. (WLFI), a U.S.-based firm linked to the Trump family. The agreement aims to boost Pakistan’s financial inclusion and place it as a regional crypto hub. This collaboration has raised serious concerns in New Delhi. Given the decentralized nature of cryptocurrencies, Indian security experts fear their misuse. Issues like terrorism financing and cross-border money laundering have emerged. A clear Indian crypto strategy is seen as essential to address these risks. India’s financial and national security interests now intersect with crypto developments. Delay in action may expose India to vulnerabilities, especially with neighbouring countries moving quickly.

Global Crypto Reserves Reshape Financial Power

Countries like the United States, Russia, China, and the UAE are reshaping finance through strategic crypto reserves. The U.S. has stopped auctioning seized crypto and now holds over $4 billion in Bitcoin. Russia uses crypto to bypass sanctions, while China quietly holds seized Bitcoin despite banning trading. These reserves serve as digital gold, giving countries economic strength and technological leverage. Crypto reserves help hedge inflation, diversify risk, and act as buffers during crises. A strategic crypto reserve also signals seriousness about Web3 leadership. India’s $620 billion forex reserve could be diversified by allocating 1–2% into Bitcoin, Ethereum, or stablecoins. This move could secure India’s position in global crypto leadership.

Urgency for Indian Crypto Strategy

India ranks #1 in grassroots crypto adoption and hosts a top-tier Web3 developer base. However, experts note that regulatory clarity is missing. A strong Indian crypto strategy can protect the economy and promote innovation. A well-structured crypto reserve can stabilize the rupee, support the Digital Rupee rollout, and attract global investors. It could also fund government DeFi initiatives, pushing India ahead in digital finance. Tokenizing assets like gold could boost liquidity and connect traditional finance with blockchain systems. India could also retain seized crypto as part of its strategic reserve, without public spending.

Outlook for India’s Role in Global Crypto Shift

The global trend is clear: crypto is no longer just an investment tool. It’s a geopolitical asset. As countries shift from dollar dependency, crypto is becoming a neutral trade settlement option. India faces the risk of being sidelined if it fails to act swiftly. Financial crises could worsen without crypto buffers. Technological lag may widen if India stays reactive instead of proactive. The risk of losing Web3 talent to crypto-friendly nations is rising. To avoid falling behind, India must define its crypto policy now. The global digital economy is evolving fast. India has the tools, talent, and momentum. A timely Indian crypto strategy could secure both national security and economic leadership in this new era.