Brazilian Lawmaker Proposes $18 Billion Bitcoin Reserve Initiative

Brazilian lawmaker Eros Biondini has put forth a bill suggesting the establishment of a Bitcoin (BTC) Sovereign Strategic Reserve (RESBit) with an allocation of up to $18.6 billion, equivalent to 5% of Brazil's international reserves. The proposed RESBit aims to diversify Brazil's Treasury assets, safeguard international reserves against exchange rate fluctuations and geopolitical risks, and serve as a backing for the country's central bank digital currency (CBDC), the Drex. The bill seeks to modernize Brazil's technological and financial management to enhance competitiveness in the global digital economy. It references successful blockchain integration in countries like El Salvador, the US approval of ETFs, China's digital yuan, Dubai's crypto initiatives, and the MiCA regulation in the EU. The legislation also emphasizes the growing acceptance of crypto as a legitimate asset class and outlines plans for research, education, and startup incentives in the blockchain space. Brazil's Central Bank and Ministry of Finance would oversee the custody of BTC under the bill, with regular reporting on RESBit's activities. The initiative aims to position Brazil as a leader in the digital economy, reduce economic risks, and foster technological and financial growth opportunities. Read more AI-generated news on: https://app.chaingpt.org/news