Brazil proposes a Bitcoin reserve, allocating 5% of its international assets to hedge risks and support its CBDC.
The Bitcoin reserve bill includes advanced security, public education, and compliance with Brazil’s fiscal laws.
Brazil joins nations exploring Bitcoin as a strategic asset, reflecting growing crypto adoption on a global scale.
Brazil’s Chamber of Deputies is reviewing a new bill proposing the creation of a national Bitcoin reserve. Federal Deputy Eros Biondini filed the bill on November 25, advocating for up to 5% of Brazil's international reserves to be allocated to Bitcoin.
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The proposed Bitcoin reserve, titled the Sovereign Strategic Reserve of Bitcoins (RESBit), aims to diversify the Treasury’s holdings. The plan also includes supporting Drex, Brazil’s central bank digital currency (CBDC). Biondini highlighted Bitcoin’s potential to hedge against exchange rate fluctuations and geopolitical risks.
If passed, the reserve would be managed by Brazil’s Central Bank and the Ministry of Finance. Moreover, it would utilize cold wallet storage and advanced blockchain monitoring systems to ensure security and transparency.
Legislative Framework for Bitcoin Reserve Management
The legislation emphasizes compliance with Brazil’s Fiscal Responsibility Law. In addition, management would involve regular reporting to the National Congress. Semiannual updates would detail the reserve’s performance and Bitcoin holdings.
Additionally, the bill includes public education initiatives about digital assets. It proposes a controlled and gradual process for acquiring Bitcoin to build the reserve responsibly.
Brazil’s move could position it as a leader in adopting cryptocurrencies for sovereign purposes. The initiative reflects a growing trend among nations exploring Bitcoin as a strategic asset. El Salvador and Bhutan have already integrated Bitcoin into their national strategies.
Bitcoin as a Strategic Asset Globally
The concept of Bitcoin reserves is becoming more popular worldwide. Plans are currently being made for a comparable reserve in the United States. Lawmakers who support cryptocurrencies, like Senator Cynthia Lummis, suggest accumulating 1 million BTC within a span of five years.
Brazil’s proposed reserve marks a significant step toward broader Bitcoin adoption. If the bill succeeds, it could encourage other countries to follow suit.
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