- Representative Eros Biondini proposes creating the Sovereign Strategic Bitcoin Reserve (RESBit) in Brazil to diversify assets.
- RESBit would manage 5% of international reserves in Bitcoin, safeguarding against currency fluctuations and geopolitical risks.
Brazilian Federal Deputy Eros Biondini has introduced bill PL4501/2024, aiming to establish a Sovereign Strategic Bitcoin Reserve (RESBit) in Brazil.
This initiative mirrors the strategic asset diversification seen in the United States, highlighting Brazil’s intent to strengthen its economic foundations with Bitcoin investments.
Continuing with our report on ETHNews, this bill seeks to promote blockchain technology applications in both public and private sectors and to support the issuance of Brazil’s digital currency, “Drex.”
Under Biondini’s proposal, the Brazilian government would allocate 5% of its international reserves to purchase Bitcoin, the cryptocurrency with the highest market capitalization. The Central Bank of Brazil and the Ministry of Finance would be tasked with RESBit’s management.
“The Central Bank of Brazil, together with the Ministry of Finance, would be responsible for managing RESBit, as well as: designing advanced monitoring and control systems, using artificial intelligence and blockchain technologies, to ensure the integrity of operations; and ensuring the custody of digital assets in accordance with the highest security standards, using methods such as cold wallets and decentralized backup protocols,” the bill states.
Their responsibilities would include implementing advanced tracking and control systems using artificial intelligence and blockchain technologies, ensuring digital assets’ security through cold wallets and decentralized backup protocols.
“This project aims to modernize Brazil’s financial and technological management by establishing the Strategic Sovereign Reserve of Bitcoin (RESBit), a strategic measure to diversify the National Treasury’s assets and position the country at the forefront of the digital economy. Several countries have been adopting innovative strategies to integrate cryptocurrencies into national financial management, with positive results,” the bill emphasized.
Furthermore, the proposal outlines initiatives for blockchain education and innovation, including developing programs, creating training courses, stimulating blockchain startups, and implementing systems for monitoring and multiple-level authentication for crypto wallets.
“The proposal guarantees strict criteria in the acquisition and management of bitcoins, prioritizing consolidated assets with recognized technology. In addition, transparency will be guaranteed through periodic reports to the National Congress and society, in line with best governance practices. The cryptocurrency market has shown constant expansion.”
This legislative move is positioned as a strategic step to modernize Brazil’s financial and technological management, leveraging the economic potential of cryptocurrencies. By integrating Bitcoin into national financial management, Brazil aims to position itself at the forefront of the crypto economy, reflecting successful strategies employed by other nations.
The bill also mentions global precedents such as El Salvador’s legal adoption of Bitcoin, the approval of spot Bitcoin ETFs in the United States, China’s digital yuan, Dubai’s digital and blockchain hub, and the MiCA regulations in the European Union, illustrating a growing international trend towards embracing cryptocurrencies.
The proposal emphasizes stringent criteria for Bitcoin acquisition and management, focusing on established assets with recognized technology. It promises transparency through regular reports to the National Congress and the public, aligning with best governance practices.
As Brazil sees an expanding crypto user base, with potential projections indicating that half the population might engage with cryptocurrencies by 2030, this legislative proposal could significantly influence the broader adoption and integration of crypto assets into the Brazilian economy.
Bitcoin (BTC) is currently trading at $96,407 USD, reflecting a daily increase of 0.45%. Over the past month, Bitcoin has surged by 37.79%, and its year-to-date performance boasts an impressive gain of 127.98%.
Despite a recent correction of approximately 7% from its all-time high of $99,800 USD, Bitcoin remains close to breaking the key psychological resistance at $100,000 USD.