Brazil Plans Bitcoin Reserve to Boost Economy

Congressman Eros Biondini wants to establish the Bitcoin Sovereign Strategic Reserve, also known as RESBit (Reserva Estratégica Soberana de Bitcoins).

This reserve would help Brazil’s Treasury by adding Bitcoin to its mix of national assets. Is this the start of a Bitcoin reserve policy in Latin America?

How Would It Work?

Biondini officially filed the proposal on Monday, aiming to position Brazil as a leader in the digital economy. He wrote, “The creation of RESBit is a strategic measure that positions Brazil as a leader in the new digital economy, reducing economic risks and expanding opportunities for technological and financial development.” Simply put, he believes this plan will keep Brazil ahead of the curve.

The proposal suggests Brazil’s Central Bank would handle the buying and managing of Bitcoin for the reserve. Purchases would be made gradually, up to 5% of the country’s national reserves. This careful approach aims to build a strong foundation for the country’s future without taking on unnecessary risks.

JUST IN: A bill to create a strategic #Bitcoin reserve has been introduced in Brazil’s Chamber of Deputies 🇧🇷 pic.twitter.com/0jh3hXaxCJ

— Bitcoin Magazine (@BitcoinMagazine) November 26, 2024

Biondini explained that this plan would protect Brazil’s economy and align it with global trends. “The approval of this project is essential to guarantee the country’s economic sovereignty and align Brazil with global innovation trends,” he said.

The Bigger Picture

If this bill passes, Brazil will be one of the first countries to include Bitcoin in its national reserves. It’s a move that could inspire other countries to follow suit. Brazil would also strengthen its position as a tech-savvy leader in the global economy.

Biondini’s idea is a bit like “preparing for a rainy day.” By investing in Bitcoin now, Brazil could have a financial safety net for the future. It’s also a way to “get ahead of the game” in the race to adopt new technologies.

Disclaimer

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