In a move towards integrating cryptocurrencies into the country’s financial framework, Brazilian federal representative Eros Biondini has introduced a bill to create a national bitcoin reserve.
Proposed Bitcoin reserve bill in Brazil
Submitted on Monday, legislation It 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 representative, the bill aims to protect Brazil’s reserves from exchange rate fluctuations and geopolitical risks, promote the adoption of blockchain technology across the public and private sectors, and provide strong support for the issuance of Drex, Brazil’s new digital currency.
Biondini stressed that the creation of RESBit is a strategic measure that is said to put Brazil at the forefront of the world Digital economy. The representative told a local media outlet:
The approval of this project is essential to ensure the country’s economic sovereignty and align Brazil with global innovation trends. This initiative is essential to ensure the country’s economic sovereignty and align Brazil with global innovation trends.
Includes general education about crypto assets
The draft law also outlines the planned approach to acquiring cryptocurrencies, proposing a “gradual accumulation of Bitcoin” limited to 5% of Brazil’s international reserves, with these assets managed by Cool wallets.
In addition, the lawmaker said Monday that any spending from the reserve must comply with Brazil’s Fiscal Responsibility Law, which ensures fiscal discipline. The legislation stipulates that all transactions must be reported semi-annually to the National Congress to maintain transparency and accountability.
It will reportedly be the responsibility of Bitcoin reserve management Brazilian Central Bank (BC) in cooperation with the Ministry of Finance. BC will 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 has exceeded $3 trillion in recent weeks.
Despite the volatility of cryptocurrencies, the MP said that they are increasingly being recognized as a legitimate asset class. He points out that countries that adopt effective economic integration strategies with cryptocurrencies are likely to reap significant benefits in the medium to long term.
At the time of writing, BTC is trading at $92,620, having seen a 7% correction in the past four days after almost reaching the $100,000 mark at the end of the week. However, the value of the leading cryptocurrencies increases by 37% each month on longer time frames.
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