Brazilian lawmaker Eros Biondini recently proposed the establishment of a Bitcoin Sovereign Reserve Strategy (RESBit), planning to allocate up to $18.6 billion, equivalent to 5% of Brazil's total international reserves as of September this year.
According to the proposal, RESBit aims to diversify Brazil's treasury assets, reduce the impact of exchange rate fluctuations and geopolitical risks on international reserves, and provide support for the development of Brazil's central bank digital currency Drex.
The goal of this bill is to "promote the modernization of Brazil's technology and financial management" and enhance the country's competitiveness in the global digital economy.
RESBit emphasizes that many countries have successfully applied blockchain technology to their national financial management systems, such as El Salvador, the US approval of a BTC ETF, China's digital renminbi, Dubai becoming a crypto asset hub, and the EU's adoption of the MiCA regulatory framework.
The report also points out that although the crypto asset market is highly volatile, it has become a widely accepted asset class in recent years, especially after reaching a peak market capitalization of $3.5 trillion.
"While volatility is inevitable, the data clearly shows that crypto assets are increasingly consolidating their position as a legitimate asset class. Those countries that proactively incorporate them into their economic strategies will reap significant economic benefits in the medium to long term."
According to the bill, the Central Bank of Brazil and the Ministry of Finance will be responsible for the custody of BTC, and will be required to report on the acquisition, performance, security, and risks of RESBit every six months.
In addition to diversifying the country's international reserves, the bill also mentions promoting research and development related to blockchain.
Educational initiatives include training public agencies to implement the RESBit program, creating blockchain, Crypto asset, and cybersecurity-related graduation courses in public educational institutions, and incentivizing startups to create Crypto asset-related projects.
Biondini stated: "The establishment of RESBit is a strategic measure that will place Brazil at the forefront of the new digital economy, reducing economic risks and expanding opportunities for technological and financial development."
According to the latest report by Chainalysis, Brazil ranks 10th globally in the Crypto asset adoption index and is expected to have the second-largest Crypto asset receipts between 2022 and 2023.
