Key Takeaways
- A groundbreaking Brazilian bill, introduced by Federal Deputy Eros Biondini, proposes the creation of a national Bitcoin reserve, dubbed the Sovereign Strategic Reserve of Bitcoins (RESBit), which would manage up to 5% of the country’s international reserves, marking a significant milestone in the country’s adoption of digital assets.
- The reserve aims to provide a robust backing for Brazil’s central bank digital currency, Drex, utilizing cutting-edge blockchain and artificial intelligence technologies to ensure the integrity of transactions and safeguard the country’s financial stability.
A Brazilian federal deputy has introduced pioneering legislation to establish a national Bitcoin reserve, which would hold up to 5% of the country’s international reserves, in a bid to diversify the Treasury’s assets and provide a solid foundation for the country’s central bank digital currency (CBDC).
The proposed bill, filed on November 25 by Federal Deputy Eros Biondini, seeks to establish the RESBit, which would be managed by Brazil’s Central Bank in partnership with the Ministry of Finance, utilizing state-of-the-art cold wallets to ensure the security and integrity of the reserve.
“The formation of RESBit is a strategic measure that positions Brazil at the forefront of the new digital economy, reducing economic risks and expanding opportunities for technological and financial development,” Biondini wrote in the bill’s justification, highlighting the potential benefits of this innovative approach.
The proposed reserve would serve as a robust backing for the issuance of Drex, Brazil’s CBDC, and would incorporate advanced monitoring systems leveraging artificial intelligence and blockchain technology to ensure the integrity of transactions, thereby promoting trust and confidence in the country’s digital currency.
Management of the reserve would be subject to Brazil’s Fiscal Responsibility Law, with regular semiannual reports to the National Congress, ensuring transparency and accountability in the management of the country’s digital assets.
“The cryptocurrency market has shown consistent expansion, with the total global cryptocurrency market surpassing $3 trillion in 2021, according to CoinGecko, demonstrating the growing recognition of cryptocurrencies as a legitimate asset class, despite their inherent volatility,” Biondini stated in the bill, underscoring the potential of digital assets.
The legislation also includes provisions for comprehensive educational programs aimed at informing the public about digital assets, with implementation planned through a gradual and controlled acquisition process, ensuring a smooth transition to a more digitalized economy.
