A Brazilian lawmaker has introduced a bill proposing the creation of a Bitcoin reserve in an effort to diversify the country’s financial assets.
On Monday, November 25, MP Eros Biondini introduced a bill to parliament proposing the creation of a “Reserva Estratégica Soberana de Bitcoins (RESBit)” or “Strategic Sovereign Bitcoin Reserve.”
The bill proposes allocating up to 5% of Brazil’s approximately $372 billion in international reserves to Bitcoin through a gradual purchase strategy.
The bill stated that creating a Bitcoin reserve could increase the country's economic resilience against exchange rate fluctuations and geopolitical uncertainties.
It was also stated that examples such as the acceptance of Bitcoin as legal tender in El Salvador and the approval of spot Bitcoin exchange-traded funds in the United States have inspired innovative national strategies.
“Bitcoin Land Race Has Started”
Presto Research analysts Peter Chung and MinJung emphasized that Brazil’s move is similar to the “Bitcoin Act 2024” introduced by US Senator Cynthia Lummis in July. Lummis’ bill proposes a regulation that would allow the US to hold Bitcoin and states to follow suit.
Similarly, earlier this month, a Pennsylvania lawmaker introduced a new bill that would allow the state treasury to invest in Bitcoin.
“A ‘land grab’ race for Bitcoin has begun among nation-states,” Presto analysts said, adding that Brazil would not be the last country to follow suit.
