Brazilian legislator Eros Biondini recently proposed establishing a Bitcoin sovereign strategic reserve (RESBit), planning to allocate up to $18.6 billion, equivalent to 5% of Brazil's total international reserves as of September this year.
According to the proposal, RESBit aims to diversify Brazil's treasury assets, reducing the impact of exchange rate fluctuations and geopolitical risks on international reserves, while supporting the development of Brazil's central bank digital currency Drex.
The goal of this bill is to enhance the country's competitiveness in the global digital economy by "advancing the modernization of Brazil's technology and financial management."
RESBit emphasizes that many countries have successfully applied blockchain technology to their national financial management systems, such as El Salvador, the United States approving Bitcoin ETFs, China's digital yuan, Dubai becoming a center for crypto assets, and the EU passing the MiCA regulatory framework.
The report also indicates that despite the high volatility of the crypto asset market, it has become a widely accepted asset class in recent years, especially after its total market value reached a peak of $3.5 trillion, highlighting its value.
"Although volatility is inevitable, the data clearly shows that crypto assets are increasingly solidifying their status as a legitimate asset class. Countries that actively incorporate them into their economic strategies will reap significant economic benefits in the medium to long term."
Under this bill, the Brazilian Central Bank and 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 promotes 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 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 reception volume during the period from 2022 to 2023.
