Brazilian congressman introduced the "Bitcoin Sovereign Strategic Reserve" (RESBit) bill on the 25th, stating that it can not only bring innovation opportunities to Brazil but also help diversify economic risks. If passed, the bill will allow for the phased purchase of Bitcoin, up to 5% of the national reserves. (Background: Brazil ordered a nationwide ban on X (Twitter)! Musk angrily denounced the trampling of free speech, what's going on?) (Additional background: A head start! The first "Solana Spot ETF" has been approved by the Brazilian Securities Commission, SOL surged) Brazilian congressman Eros Biondini proposed a notable bill this Monday (25th), suggesting the establishment of a fund named "Bitcoin Sovereign Strategic Reserve" (Reserva Estratégica Soberana de Bitcoins, abbreviated as RESBit) in Brazil, aimed at enhancing the diversity of Brazil's national financial reserves. According to the proposal, the Brazilian Central Bank will be responsible for managing the reserve and the gradual acquisition of Bitcoin. The bill stipulates that Brazil will gradually allocate 5% of its national foreign exchange reserves to Bitcoin. Brazil's 4501/2024 (bill) strengthens national sovereignty. Biondini emphasized in the bill's explanation that establishing RESBit can not only diversify the risks of Brazil's financial reserves but also position Brazil as a leader in the global digital economy. He stated that this measure will effectively reduce the economic risks faced by Brazil and open up more opportunities for the country's future development in technology and finance. Biondini said: "This is an important step to ensure Brazil's economic sovereignty and a necessary measure to align with global innovation trends." The future of Brazil's digital finance According to Cointelegraph, if the bill is approved, the Bitcoin reserve will become an important tool to protect Brazil's sovereign reserves from currency fluctuations and geopolitical risks. Furthermore, this measure also provides collateral for Brazil's central bank digital currency "Real Digital" (Drex). Note: Brazil's sovereign reserves are mainly composed of assets linked to fiat currencies such as the US dollar, and as of the end of 2023, Brazil has $355 billion in reserves. According to the proposed bill, Brazil will gradually purchase Bitcoin to supplement its existing foreign exchange reserves, with a maximum proportion of up to 5% of total reserves, equivalent to about $17.75 billion worth of Bitcoin as strategic reserves. Currently, the bill has been submitted to the President of the Brazilian Chamber of Deputies for review, and if approved, it will enter various specialized committees for debate. The rapid growth of the Brazilian market According to data from blockchain analysis company Chainalysis, Brazil has already become the tenth largest cryptocurrency market in the world. In the first nine months of 2024, Brazil's cryptocurrency imports increased by 60.7%, surpassing the total for all of 2023. JUST IN: Brazil's crypto imports rose 60.7% in the first nine months of 2024, surpassing the total for all of 2023. — Watcher.Guru (@WatcherGuru) October 29, 2024 The rise of stablecoins in Brazil In addition to Bitcoin, the use of stablecoins in the Brazilian market has also significantly increased. According to Chainalysis' report, Brazil's institutional cryptocurrency activities in Latin America show that financial institutions' interest in cryptocurrencies continues to rise, especially with the launch of Bitcoin and Ethereum ETFs. Brazil ranks ninth in the global cryptocurrency adoption index, with stablecoin trading accounting for 59.8% of the market share. In particular, stablecoins pegged to the US dollar (such as USDT) currently have a market share close to 70% in Brazilian cryptocurrency trading, demonstrating the important position of stablecoins in Brazil's cryptocurrency market. Related reports: Brazil ordered a nationwide ban on X (Twitter)! Musk angrily denounced the trampling of free speech, what's going on? A head start! The first "Solana Spot ETF" has been approved by the Brazilian Securities Commission, SOL surged. Let 100 million customers use the Bitcoin Lightning Network! Brazil's largest online bank Nubank: significantly promoting cryptocurrency usage rates in Latin America. "Brazilian congressman proposes to incorporate Bitcoin into national reserves: plans to invest $17.7 billion to hoard BTC." This article was first published on BlockTempo (the most influential blockchain news media).

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