New Bill For National Bitcoin Reserve Introduced In Brazil’s Chamber Of Deputies

In a step toward integrating crypto into the country’s financial framework, Brazilian federal deputy Eros Biondini introduced a bill to create a national Bitcoin reserve. 

Filed on Monday, the legislation proposes the establishment of the Sovereign Strategic Bitcoin Reserve (RESBit), which is designed to diversify the financial assets of Brazil’s National Treasury.

According to the deputy, 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 solid backing for issuing 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 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.

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 would have to comply with Brazil’s Fiscal Responsibility Law, which ensures fiscal discipline. The legislation mandates that all transactions must be reported semiannually to the National Congress to maintain transparency and accountability. 

The management of the Bitcoin reserve would reportedly be 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 has surpassed $3 trillion 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 strategies for economic integration with cryptocurrencies, he suggests, will likely 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 leading crypto is up 37% every month in longer time frames.

Featured image from DALL-E, chart from TradingView.com