The Bitcoin Policy Institute of India aims for financial independence, though Trump’s Fed chair pick could affect its progress.
The Bitcoin Policy Institute of India launched on August 15. The organisation aims to set Bitcoin up as a tool for financial independence. This includes using the cryptocurrency to reduce transaction costs and make India a leader in the digital economy.
Despite India’s ambitions, the country can still be affected by global monetary policy, especially in the United States.
Here’s how the upcoming decisions about the Federal Reserve’s leadership could affect India’s strategy and the crypto market as a whole.
How The US Fed Policy Could Affect India’s Bitcoin Policy
The United States Federal Reserve is one of the biggest drivers of liquidity around the world. Its policies affect interest rates, market confidence and the appetite for risk assets like Bitcoin.
According to economist Alex Krüger, Bitcoin markets may not fully price in changes until President Donald Trump announces a new Fed chair to replace Jerome Powell.
President Trump is right. Fed Chair Powell has lied to and failed the American people for years – it’s time for new leadership at the Federal Reserve.
Read more ➡️ https://t.co/tGvz9giNN8 pic.twitter.com/qhsKemQp5q
— Rick Scott (@SenRickScott) April 17, 2025
This means that if the new leadership pushes for more dovish policies, markets could see lower interest rates.
That would make Bitcoin more attractive compared to traditional assets like bonds and precious metals.
This is also great for the Bitcoin Policy Institute of India, as this environment could give it massive momentum. Stronger cross-border demand for Bitcoin would give India a chance to frame the asset as a strategic asset, much like it has with gold in the past.
Bitcoin Policy Institute of India Targets Renewable Energy
A major part of the institute’s plan is using renewable energy for mining. India expects to generate 200 gigawatts of renewable energy this year. BPI India believes this capacity can support Bitcoin mining while keeping costs low.
This Week in Our Statistical Series📊⚡
India’s renewable journey is scaling new heights — from solar parks to wind corridors, from bio-energy to small hydro, the clean energy landscape is expanding at an unprecedented pace.
With strong installations already in place and… pic.twitter.com/eko84xaRlp
— Ministry of New and Renewable Energy (MNRE) (@mnreindia) August 19, 2025
Other nations have already done this in the past. For example, Kazakhstan earned $500 million in mining revenue last year by making use of its energy resources.
India’s ability to scale is even greater, and should give the Bitcoin Policy Institute of India an opportunity to connect economic growth with clean energy adoption.
At the same time, it is important to keep track of international market conditions. If U.S. policies encourage better Bitcoin adoption, India’s renewable-based mining could become a major advantage when it comes to competing with other nations.
Bitcoin and India’s Cross-Border Payment Challenge
India’s IT industry is worth $245 billion, and the country relies heavily on cross-border payments. Rising costs have strained this sector, with the International Monetary Fund reporting a 15% increase in cross-border fees last year.
The Bitcoin Policy Institute of India sees Bitcoin as a solution. Blockchain-based payments could cut costs, speed up transactions and reduce reliance on dollar-based systems.
A more favourable environment shaped by U.S. monetary easing would make Bitcoin even more viable as an alternative payment system.
Risks to India’s Bitcoin Policy Strategy
While the targets are worth chasing, there are still a few risks to consider.
For starters, the most obvious challenge is Bitcoin’s volatility. This aspect of cryptocurrency could threaten financial stability if it becomes too central in India’s system.
Regulatory uncertainty is another factor, considering how India’s government has not finalised its position on the use of crypto.
International conditions are also another layer of risk. If Trump’s Fed chair appointment results in tighter monetary policy, Bitcoin’s value could face downward pressure.
That would weaken the foundation for India’s strategy. This said, the Bitcoin Policy Institute of India will need to plan for both bullish and bearish scenarios.
What Comes Next In India’s Path?
The Bitcoin Policy Institute of India was launched to promote financial self-reliance. Its goals of promoting Bitcoin as a strategic asset and using renewable energy for mining will either succeed or struggle, depending on the rest of the world.
The U.S. Federal Reserve’s direction under new leadership could affect investor behaviour in the US, in India and everywhere else in the world, where Bitcoin is spent.
If monetary policy turns dovish, Bitcoin demand may rise and give India the foothold it needs. However, if policies tighten, India will likely face more resistance.
What comes next for India and its Bitcoin Policy Institute? Only time can tell.
