The bill aims to "modernize Brazil's technological and financial management," striving to enhance competitiveness in the global digital economy.
Source: cryptoslate
Translation: Blockchain Knight
Brazilian legislator Eros Biondini recently proposed establishing a BTC sovereign strategic reserve (RESBit) with an allocation 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 fluctuations in exchange rates and geopolitical risks, and support Brazil's central bank digital currency Drex.
The bill aims to "modernize Brazil's technological and financial management," striving to enhance competitiveness in the global digital economy.
RESBit noted that many countries that have incorporated blockchain technology into their national financial management have succeeded, such as El Salvador, the U.S. approving ETFs, domestic digital yuan, Dubai becoming a Crypto asset hub, and the EU's MiCA regulations.
The report also pointed out that despite significant volatility, Crypto assets have become a viable asset class in recent years, especially after their market capitalization reached a historical high of $3.5 trillion.
"Despite instability, data indicates that the status of Crypto assets as a legitimate asset class is solidifying. Countries that strategically integrate them into their economies will reap substantial benefits in the medium to long term."
According to the bill, the Central Bank of Brazil and the Ministry of Finance will be responsible for holding BTC and will need to report 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 execute the RESBit plan, 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 leadership position in the new digital economy, reducing economic risks and expanding 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 Crypto asset inflow during the 2022 to 2023 period.
