In a step towards integrating crypto into the country’s financial framework, Brazilian Federal Representative Eros Biondini has introduced a bill to create a national Bitcoin reserve.
Brazil’s Proposed Bitcoin Reserve Bill
Submitted to the on Monday legislation proposes the creation of the Sovereign Strategic Bitcoin Reserve (RESBit), which is designed to diversify the financial assets of the Brazilian National Treasury.
According to the deputy, the bill aims to protect Brazil’s reserves against exchange rate fluctuations and geopolitical risks, the introduction of blockchain technology in the public and private sectors, and provide solid support for the issuance of Drex, Brazil’s new digital currency.
Biondini emphasized that the creation of RESBit is a strategic measure that reportedly positions Brazil at the forefront of the world. digital economy. The deputy told a local media outlet:
The approval of this project is essential to guarantee the country’s economic sovereignty and align Brazil with global innovation trends. This initiative is essential to guarantee the country’s economic sovereignty and align Brazil with global innovation trends.
Public education on crypto assets included
The bill also outlines a planned approach to acquiring cryptocurrencies, proposing a “gradual Bitcoin accumulation” limited to 5% of Brazil’s international reserves, with the management of these assets through cold wallets.
In addition, the deputy said on Monday that any spending from the reserve must comply with Brazil’s Fiscal Responsibility Law, which guarantees budget discipline. The legislation requires all transactions to be reported to the National Congress on a semi-annual basis to maintain transparency and accountability.
Management of the Bitcoin reserve is reportedly the responsibility of the Central Bank of Brazil (BC), in collaboration with the Ministry of Finance. The BC would also be tasked with developing monitoring and control systems using artificial intelligence and blockchain technologies for ‘operational integrity’.
The bill also includes provisions to educate the public about crypto assets. Biondini highlighted the growing importance of cryptocurrencies, noting that their global market value The $3 trillion mark has been passed in recent weeks.
Despite the volatility of cryptocurrencies, the deputy argued that they are increasingly recognized as a legitimate asset class. Countries that adopt effective economic integration strategies with cryptocurrencies are likely to reap significant benefits in the medium to long term, he said.
At the time of writing, BTC is trading at $92,620, following a 7% correction in the past four days after nearly reaching the $100,000 mark at the end of the week. However, the leading cryptocurrency is up 37% every month over longer time frames.
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