Bill to Establish a Bitcoin Reserve is Introduced in Brazil
A legislator in Brazil has proposed a bill to establish a national Bitcoin reserve in order to diversify the country’s financial assets. Congressman Eros Biondini put forward a bill on Monday proposing the creation of the “Reserva Estratégica Soberana de Bitcoins (RESBit),” or Strategic Sovereign Bitcoin Reserve.
The bill suggests that Brazil should invest up to 5% of its $372 billion international reserves in Bitcoin using a phased acquisition approach. The proposition argues that having a Bitcoin reserve could improve the country’s financial stability amid currency fluctuations and geopolitical uncertainties. It also points to the recent examples of El Salvador adopting Bitcoin as legal tender and the US approving spot Bitcoin exchange-traded funds as indications of innovative national strategies.
According to analysts Peter Chung and Min Jung from Presto Research, Brazil’s bill to establish a bitcoin reserve is similar to the Bitcoin Act 2024 introduced by US Senator Cynthia Lummis in July.
Lummis’ bill outlines a framework for the US to hold Bitcoin and gives states the option to do the same. In addition, a lawmaker in Pennsylvania has also recently proposed a bill that would enable the state treasurer to invest in Bitcoin.
