As Bitcoin surges towards the $100,000 mark in the past few weeks, and with its capacity to act as a buffer against the worldwide inflation-driven financial framework, Brazil is eager to join other countries establishing reserves.
Brazil is considering a move to create a national Bitcoin reserve as part of a broader strategy to strengthen its economic stability and leadership in digital innovation.
Congressman Eros Biondini recently introduced a bill in the National Congress proposing the establishment of the Sovereign Strategic Bitcoin Reserve (RESBit). This initiative aims to protect the nation’s financial assets, diversify reserves, and promote blockchain technology integration across the public and private sectors.
The bill outlines specific goals for the reserve. These include safeguarding Brazil’s international reserves from exchange rate fluctuations and geopolitical risks, fostering innovation by encouraging blockchain adoption, and providing a foundation for the country’s upcoming digital currency, the Real Digital Drex.
To ensure responsible implementation, the proposal suggests a gradual acquisition of Bitcoin, limiting holdings to 5% of Brazil’s international reserves.
It emphasizes transparency, with semiannual updates to Congress and the public, and mandates strict compliance with financial accountability laws to prevent fiscal imbalance. Bitcoin would be securely stored using cold wallets and other proven technologies.
Supporters of the initiative highlight the continuous growth of the global cryptocurrency market. In 2021, the market surpassed $3 trillion in value, underscoring the rising legitimacy of digital assets.
Advocates argue that adopting such a reserve could position Brazil as a leader in the digital economy, reduce economic risks, and open new opportunities for financial and technological development.
If passed, this legislation could significantly align Brazil with global trends in financial innovation and secure its economic sovereignty in an increasingly digital world.
Brazil ranks among the top countries globally in cryptocurrency usage. It frequently appears near the top of rankings like the Chainalysis Global Crypto Adoption Index. A 2022 survey by Finder revealed that about 16% of Brazilians have used or owned cryptocurrencies.
The South American country is also working towards its Central Bank Digital Currency – Drex. The Apex bank just recently selected Visa, Microsoft, and Santander to partake in the second stage of its “Digital Real” program, with Chainlink joining up less than a week ago.
