Brazilian lawmaker Eros Biondini Introduced legislation proposing the creation of a Bitcoin (BTC) Sovereign Strategic Reserve (RESBit) with an allocation of up to $18.6 billion — equivalent to 5% of Brazil’s international reserves as of September.
According to the bill, the RESBit will diversify Brazil’s Treasury assets, protect international reserves against exchange fluctuations and geopolitical risks, and act as backing for the country’s central bank digital currency (CBDC), the Drex.
This bill is intended to “modernize the technological and finance management in Brazil”In an attempt to be more competitive in the digital economy.
The legislation points to the success of countries that have integrated blockchain technology into national finance management, such as El Salvador, the US approval of exchange-traded funds (ETF), the Chinese digital yuan, Dubai’s efforts to become a crypto hub, and the MiCA regulation in the European Union.
The report also stated that despite its high volatility and new record market capitalization of $3.5 trillion, crypto has become a valuable asset class in recent years.
Document:
“Although volatile, data indicates that crypto is consolidating as a legitimate asset class. Countries that adopt strategies to integrate them economically will sow significant benefits in the medium and long terms.”
Under the bill, Brazil’s Central Bank and Ministry of Finance will be responsible for the custody of BTC and would be required to report RESBit’s acquisitions, performance, security, and risks every six months.
Push for Education
In addition to diversifying the country’s international reserves, the bill also mentions fostering research and development related to blockchain.
Public education institutes will be able to offer graduation programs that include blockchain, cryptocurrency, and cyber security. They’ll also encourage startups to work on crypto projects.
Biondini said:
“The formation of RESBit is a strategic measure that positions Brazil at the leadership of the new digital economy, reducing economic risks and amplifying the technological and financial development opportunities.”
According to Chainalysis’ latest report, Brazil ranks 10th in the global crypto adoption index and boasts the second-most significant amount received in crypto between 2022 and 2023.
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