Eros Biondini, the Brazilian Congressman, has proposed a bill to establish a Bitcoin Strategic Sovereign Reserve (RESBit).
The Congressman aims to diversify Brazil’s national assets and address global financial risks. His suggested bill proposes allocating up to 5% of Brazil’s international reserves to BTC.
If passed, the bill can bolster Brazil’s economic resilience by adding the biggest crypto into the nation’s official reserves. The bill has emphasized the need for transparency in reserve management.
Brazil’s central bank and the treasury will collaborate to moderate the BTC reserve and facilitate accountability through frequent disclosures.
Regarding security, the bill explains that the reserve must be kept in cold wallets. The wallets will be kept offline to avoid online breaches and threats.
Brazil Proposes Bitcoin Reserve to Back CBDC
Another major aspect of the proposal is to support the development of blockchain technology. Brazil will use the initiative to stabilize its finances and foster technological innovation.
In addition, the bill makes space for virtual currencies’ future role. The reserve can eventually help launch the “Real Digital,” Brazil’s CBDC (central bank digital currency).
The latest proposal has come at a time when BTC and other major cryptos are nearing their all-time highs. Bitcoin recently neared the illustrious 100k-dollar mark, while other cryptos are also making giant strides.
Nations across the globe are exploring methods to integrate cryptos and other assets into their financial systems. Some countries have already paved the way for the Bitcoin reserve. With Brazil joining the race, the nation is positioning itself at the forefront of the worldwide trend.
It will reinforce the country’s role as a leader in adopting advanced financial technologies. The Bitcoin Strategic Sovereign Reserve will add another layer of security to Brazil’s financial stability as well.
At the same time, the reserve can boost the nation’s economy. Although the bill is in its early stage, its potential can have implications for decades to come.
