Brazilian lawmaker proposes national bitcoin reserve to hedge economic risks

A Brazilian lawmaker has introduced a bill seeking to establish a bitcoin reserve to diversify the nation’s financial assets.

On Monday, Congressman Eros Biondini introduced a  bill proposing the creation of the “Reserva Estratégica Soberana de Bitcoins (RESBit),” also known as the Strategic Sovereign Bitcoin Reserve. The proposal suggests allocating up to 5% of Brazil's approximately $372 billion international reserves to bitcoin through a phased acquisition strategy.

The bill stated that establishing a bitcoin reserve could enhance the country's economic resilience to currency fluctuations and geopolitical uncertainties.

The proposal also highlighted Bitcoin's adoption as legal tender in El Salvador and the approval of spot Bitcoin exchange-traded funds in the U.S. as examples of innovative national strategies.

Peter Chung and Min Jung, analysts of Presto Research, said today that Brazil’s bill to create a bitcoin reserve is similar to the Bitcoin Act 2024 that U.S. Sen. Cynthia Lummis introduced in July. Lummis' bill lays out a pathway for the U.S. to hold bitcoin and gives states the option to do so. Earlier this month, a Pennsylvania lawmaker also pushed for a new bill allowing the state treasurer to invest in bitcoin.

“The nation-state race for a bitcoin ‘landgrab’ has begun,” Presto’s analysts said. “Brazil is unlikely to be the last nation heading in this direction.”