Brazilian lawmaker proposes $18 billion Bitcoin reserve initiative Adoption 23 hours ago

Brazilian lawmaker Eros Biondini introduced legislation proposing the creation of a Bitcoin (BTC) Sovereign Strategic Reserve (RESBit) with an allocation of up to $18.6 billion — equivalent to 5% of Brazil’s international reserves as of September.According to the bill, the RESBit will diversify Brazil’s Treasury assets, protect international reserves against exchange fluctuations and geopolitical risks, and act as backing for the country’s central bank digital currency (CBDC), the Drex.The bill aims to “modernize the technological and finance management in Brazil” in an effort to become more competitive in the global digital economy.The legislation points to the success of countries that have integrated blockchain technology into national finance management, such as El Salvador, the US approval of exchange-traded funds (ETF), the Chinese digital yuan, Dubai’s efforts to become a crypto hub, and the MiCA regulation in the European Union.It also noted that recent years have established crypto as a viable asset class despite the high volatility, especially after it hit a new all-time high market cap of $3.5 trillion.According to the document:“Although volatile, data indicates that crypto is consolidating as a legitimate asset class. Countries that adopt strategies to integrate them economically will sow significant benefits in the medium and long terms.”Under the bill, Brazil’s Central Bank and Ministry of Finance will be responsible for the custody of BTC and would be required to report RESBit’s acquisitions, performance, security, and risks every six months.In addition to diversifying the country’s international reserves, the bill also mentions fostering research and development related to blockchain.The educational push includes training public agents to act on the RESBit initiative, creating graduation programs tied to blockchain, crypto, and cybersecurity at public education institutions, and incentivizing startups to create crypto-related projects.Biondini said:“The formation of RESBit is a strategic measure that positions Brazil at the leadership of the new digital economy, reducing economic risks and amplifying the technological and financial development opportunities.”According to Chainalysis’ latest report, Brazil ranks 10th in the global crypto adoption index and boasts the second-most significant amount received in crypto between 2022 and 2023.Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting. Join our X community for real-time crypto news and expert insights.The CBDC pilot aims to automate cross-border commodity settlements through Chainlink’s CCIP.The partnership aims to explore payment and delivery systems for trade finance and carbon credits amid global tokenization shifts.Stablecoins are helping Latin Americans hedge against currency devaluation, becoming financial lifelines amid economic instability.Ripple Payments reaches over 80 payout markets and covering more than 90% of daily FX markets.Eric Balchunas believes that over 40 altcoin-related ETF listings can happen by the end of January.CryptoQuant CEO suggests South Korean leadership overhaul is necessary for a more crypto-friendly environment.High-crypto areas see 250% increase in mortgages as low-income families leverage digital windfalls, Treasury report shows.Bitcoin sharp upside left no time for supply to change hands, creating an “air gap” region below $88,000.CryptoSlate’s latest report dives deep into Polymarket’s evolution, its pivotal role in high-stakes prediction events like US elections, and the implications of its controversies on its market position.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.