Brazil Introduces Bill to Establish Strategic Bitcoin Reserve

Eros Biondini, a Brazilian congressman, has proposed the establishment of a national Bitcoin (BTC) reserve known as the “Bitcoin Sovereign Strategic Reserve” (RESBit).

The proposed initiative allocates up to 5% of Brazil’s international reserves, valued at approximately $370 billion, to BTC. This would translate to a potential $18.5 billion investment in the leading cryptocurrency, with a market valuation of about $1.83 trillion.

Management and Security of RESBit

Under the proposal, Brazil’s central bank would purchase and manage Bitcoin holdings. To ensure security, the assets would be stored in “cold wallets,” safeguarding them from cyber threats.

Additionally, the bill mandates the central bank to publish biannual reports on the reserve’s status and transactions. If approved, Brazil’s BTC holdings could reach $3 billion, depending on the cryptocurrency’s price.

Biondini described RESBit as a forward-thinking strategy to position Brazil as a pioneer in the global digital economy while mitigating economic vulnerabilities. However, the proposal faces significant hurdles in Brazil’s legislative process, where concerns about the asset’s volatility and associated risks may provoke opposition.

The RESBit initiative comes as emerging markets, including Brazil, grapple with economic challenges like currency instability and external financial pressures. Proponents of the reserve argue that Bitcoin could hedge against these risks while boosting Brazil’s financial independence.

Global Momentum for Bitcoin Reserves

The concept of Bitcoin reserves is gaining momentum globally. In the United States, President-elect Donald Trump pledged to create a crypto-friendly administration, including plans to adopt Bitcoin as a strategic reserve.

Similarly, Poland’s presidential candidate, Slawomir Mentzen, intends to establish a Bitcoin reserve if elected. Meanwhile, Surinamese politician Maya Parbhoe has proposed making Bitcoin legal tender in her country.

These proposals align with a broader global movement exemplified by El Salvador, which set a precedent in 2021 by adopting Bitcoin as a legal tender. Its holdings are now valued at over $549 million. Other countries, including Argentina and Morocco, are also increasingly exploring cryptocurrency to diversify their reserves and mitigate economic uncertainty.