Brazil’s Vice President Gerald Alcumin (PSB) Chief of Staff Pedro Geordo Gerra highlighted the importance of establishing a national strategic Bitcoin Reserve on Wednesday. Guerra was speaking at the oath ceremony of Deputy Giulio Lopez (PP-RJ), the new president of FPBC (competitive Brazilian parliamentary front), representing President Luiz Inácio Lula Da Silva (PT).
“It is a public interest to discuss the constitution of the sovereign reserve of Bitcoin value in a strict manner, and is critical to our prosperity. After all, Bitcoin is digital gold, the gold of the internet. It is a technology that allows for the rapid and easy saving of wealth from one end of the planet and efficient saving of labor.”
Will Brazil acquire a strategic Bitcoin reserve?
His remarks highlight the intrinsic appeal of Bitcoin, particularly its digital rarity and deflationary design, in contrast to the free-to-print Fiat currency. Guerra noted that formal BTC preparations could enhance the resilience and adaptability of the country, particularly amidst global economic and geopolitical fluctuations.
In particular, Rep. Eros Biondini (PL-MG) introduced PL 4501/2024. According to Biondini, the main goal is to protect Brazil from currency fluctuations and geopolitical uncertainty by diversifying the government’s international reserves.
The text proposes a 5% limit on the country’s international reserve totaling $366 billion in December for the acquisition of Bitcoin. If that passes, Brazil will be allowed to invest up to $18.3 billion in Bitcoin, based on the valuation of the reserve at the time the bill was drafted.
The bill, currently being considered by Rapporteur Luiz Gastão (PSD-CE) in the House Economic Development Committee, sets guidelines for progressive acquisitions and uses cold wallets and advanced A- or blockchain-based surveillance to highlight robust security measures.
The law details how central banks and the Treasury jointly manage Resbit, ensuring transparency through annual reporting to both the public and Congress. Additionally, the text addresses the need for education and innovation programs, including specialized courses on blockchain, crypto economy, and cybersecurity, and tax incentives for crypto-related startups.
Related Reading: Trump supports Pro-Bitcoin Sen. Ramis: “Make Us Crypto Capital”
A technical advisory committee consisting of experts in blockchain, digital economy and cybersecurity will also be established to ensure strict surveillance and to encourage collaboration with international regulators and research institutions. The proposal cites global precedents, including the adoption of Bitcoin fiat currency by El Salvador, approval of the US BTC ETF, China’s investment in blockchain and digital currency efforts, success in developing a blockchain-friendly business environment in Dubai, and the EU’s regulatory framework for digital assets.
The bill, in its justification section, argues that Brazil is already one of the countries with the highest rate of cryptocurrency adoption, but government policies do not meet the rapid evolution of this market.
According to the text, “The creation of Resbit allows Brazil to diversify its international reserves, increasing economic resilience while reducing exposure to foreign exchange fluctuations and geopolitical risks. The measure positions Brazil as a regional leader in financial and innovation, attracting external investment and strengthening its presence in the digital economy.”
At the time of pressing, BTC traded for $86,205.
Featured images created with dall.e, charts on tradingview.com
Editing process Bitconists focus on delivering thorough research, accurate and unbiased content. We support strict sourcing standards, and each page receives a hard-working review by a team of top technology experts and veteran editors. This process ensures the integrity, relevance and value of your readers’ content.
