Kashif Raza: India Can Mine Bitcoin to Cut Gold Imports

Kashif Raza, founder of Indian crypto education platform Bitinning, urged policymakers to promote domestic Bitcoin mining as an alternative to gold imports. He made the remarks in a recent interview responding to measures the government has taken to support the rupee, including a May appeal by Prime Minister Narendra Modi to curb non-essential gold purchases and a rise in import duties on gold and silver from 6% to 15%.

Raza highlighted India’s supply gap in gold. Domestic production is about 1.5 tonnes a year while imports run roughly 700–720 tonnes, transactions that are settled in dollars. He said those outflows have put pressure on the rupee, which has traded near 96.9 per U.S. dollar. Higher oil prices tied to the Iran conflict and Brent crude rising above $100 have added to India’s import bill.

He proposed that India could mine Bitcoin locally and route supply to domestic exchanges and retail savers, keeping revenue inside the economy. Surplus production could be sold overseas, converting mining into dollar revenue rather than a dollar expense. “Bitcoin you don’t have to import,” Raza noted, and he described the asset as easier to divide, store and move than physical gold, with a fixed supply that cannot be expanded by a single government.

Cryptocurrency mining is not banned in India, but the tax framework is strict. Profits from digital assets classified as Virtual Digital Assets are taxed at 30%, and most crypto transactions face a 1% tax deducted at source. Raza called for active state support for mining and related infrastructure rather than mere tolerance of the industry.

He recommended other policy actions to help the rupee: clearer markets, improved financial literacy, lower taxes on stock gains and tighter limits on outbound remittances. Raza criticized the timing of the duty increase, saying the higher levy mainly affects households because gold serves cultural functions in weddings and family saving plans. He estimated that about 40% of India’s gold is concentrated in five southern states, which he said makes behaviour changes harder to achieve by regulation.

Raza added that many Indians lack financial knowledge, estimating roughly 75% to 78% of adults are financially illiterate and therefore more likely to hold gold as a familiar store of value. He argued that providing an accessible alternative asset would be more effective than raising costs through taxes.

India has long relied on imported gold, prompting authorities to use appeals, tariffs and other measures to curb demand. Supporters of domestic crypto mining point to potential data-center development, renewable energy projects and export revenue. Critics cite concerns over energy use, market volatility and the need for clearer regulation.