Source: cryptoslate
Compiled by: Blockchain Knight
Brazilian legislator Eros Biondini recently proposed the establishment of a BTC sovereign strategic reserve (RESBit), with a distribution amount of up to $18.6 billion, equivalent to 5% of Brazil's international reserves as of September.
According to the bill, RESBit will diversify Brazil's treasury assets, protect international reserves from exchange rate fluctuations and geopolitical risks, and support the Brazilian central bank's digital currency Drex.
The bill aims to "modernize Brazil's technological and financial management," striving to enhance competitiveness in the global digital economy.
RESBit points out that many countries that have incorporated blockchain technology into national financial management have already achieved success, such as El Salvador, the US approving ETFs, domestic digital RMB, Dubai becoming a Crypto asset hub, and the EU's MiCA regulation.
The report also pointed out that despite high volatility, Crypto assets have become a viable asset class in recent years, especially after their market value reached a historic high of $3.5 trillion.
"Despite instability, data indicate that the status of Crypto assets as a legitimate asset class is consolidating. Countries that take strategic measures to integrate it into their economies will reap significant benefits in the medium to long term."
According to the bill, the Brazilian central bank and the Ministry of Finance will be responsible for holding BTC and will need to report on RESBit's acquisitions, performance, security, and risks every six months.
In addition to diversifying the country's international reserves, the bill also mentions promoting research and development related to blockchain.
Education initiatives include training public agencies to implement the RESBit program, creating graduation courses related to blockchain, Crypto assets, and cybersecurity in public educational institutions, and incentivizing startups to create projects related to Crypto assets.
Biondini stated: "The establishment of RESBit is a strategic measure that places Brazil in a leading position in the new digital economy, reduces economic risks, and expands opportunities for technological and financial development."
According to the latest report from Chainalysis, Brazil ranks 10th in the global Crypto asset adoption index and had the second largest volume of Crypto asset receipts between 2022 and 2023.
