In a step towards integrating cryptocurrencies into the country's financial framework, Brazilian federal deputy Eros Biondini presented a bill to create a national bitcoin reserve.
bitcoin reserve bill proposed by Brazil
Presented on Monday, the <a target="_blank" href="https://portaldobitcoin.uol.com.br/deputado-apresenta-projeto-de-lei-para-criar-reserva-nacional-de-bitcoin-no-brasil/” target=”_blank” rel=”noopener nofollow”>legislation proposes the establishment of the Strategic Sovereign Reserve of bitcoin (RESBit), which is designed to diversify the financial assets of the Brazilian 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 in the public and private sectors, and provide solid support for the issuance of Drex, Brazil's new digital currency.
Biondini emphasized that the creation of RESBit is a strategic measure that would position Brazil at the forefront of the digital economy. The deputy told local media:
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.
Public education on crypto assets included
The bill also outlines a planned approach to cryptocurrency acquisition, proposing a “gradual accumulation of bitcoin” limited to 5% of Brazil's international reserves, with the management of these assets through cold wallets.
Additionally, the congressman said Monday that any spending from the reserve would have to comply with Brazil's Fiscal Responsibility Law, which guarantees fiscal discipline. The legislation requires that all transactions must be reported semiannually to the National Congress to maintain transparency and accountability.
bitcoin reserve management 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 MP argued that they are increasingly recognized as a legitimate asset class. It suggests that countries that adopt effective strategies for economic integration with cryptocurrencies will likely reap significant benefits in the medium and long term.
At the time of writing, btc is trading at $92,620, having seen a 7% correction over the past four days after nearly reaching the $100,000 mark at the end of the week. However, the leading cryptocurrency is up 37% each month over longer time frames.
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