Brazil Set to Establish a National Bitcoin Reserve
Congressman Eros Biondini Pushes for Bitcoin Sovereign Strategic Reserve (RESBit) as Brazil Joins Growing Pro-Crypto Trend
According to Portal do Bitcoin, a local media outlet, Brazil is positioning itself to establish a strategic national Bitcoin reserve.
A Brazillian Congressman, Eros Biondini, proposed the bill for the creation of a national Bitcoin reserve in Brazil called Bitcoin Sovereign Strategic Reserve; RESBit – Reserva Estratégica Soberana de Bitcoins, in Portuguese.
The Bitcoin Sovereign Strategic Reserve (RESBit)
On November 25, Eros Biondini filed a legislative bill to create the Sovereign Strategic Bitcoin Reserve (RESBit). This reserve, managed by the Central Bank of Brazil, would aim to shore up Brazil’s economy by diversifying its national treasury.
According to Biondini, the RESBit bill is a strategic move to protect Brazil’s economy from exchange rate fluctuations and geopolitical risks while promoting technological innovation.
“The creation of RESBit is a strategic measure that positions Brazil as a leader in the new digital economy, reducing economic risks and expanding opportunities for technological and financial development,” the Congressman wrote.
In the proposal, the reserve would gradually acquire Bitcoin, limited to 5% of the country’s international reserves. The cryptocurrency would then be stored securely in cold wallets to prevent cyber threats.
Furthermore, the bill would require the Central Bank to issue biannual reports to the National Congress, detailing the reserve’s holdings and any transactions made. This is to ensure transparency and fiscal discipline and that transactions and movements within the reserve comply with Brazil’s Fiscal Responsibility Law.
Global Trends in Cryptocurrency Adoption
Brazil’s move comes as several countries begin to adopt a positive stance on cryptocurrencies.
El Salvador was the first country to make Bitcoin a legal tender in 2021, and right now its Bitcoin holdings have exceeded $549 million. Earlier today, news broke that Morocco, a country that placed a ban on cryptocurrency in 2017, has begun efforts to legalize transactions of digital assets.
Some critics are reluctant to accept the bill because of cryptocurrency market volatility and potential risks. However, Biondini remains optimistic, asserting that countries adopting pro-crypto strategies stand to gain long-term benefits in the long run.
Brazil is the 10th largest cryptocurrency market globally with stablecoins accounting for nearly 70% of the country’s crypto transactions. The bill, if eventually passed, would ensure that Brazil takes its place as one of the global leaders in the rapidly growing world of cryptocurrency and digital assets adoption.
