On Wednesday, Pedro Giocondo Guerra, chief of staff to Brazil’s Vice President Geraldo Alckmin, emphasized the necessity of establishing a national strategic Bitcoin reserve during a ceremony to welcome the new president of the Parliamentary Front for Competitive Brazil, Deputy Júlio Lopes. This discussion took place under the auspices of President Luiz Inácio Lula da Silva’s government, highlighting a keen interest in Bitcoin as a part of Brazil’s economic strategy.
“Rigorously debating the constitution of a sovereign reserve of bitcoin value is in the public interest and will be decisive for our prosperity. After all, Bitcoin is digital gold, the gold of the internet. It’s a technology that allows us to transmit wealth from one end of the planet to the other quickly and store the fruits of our labor efficiently and securely,” Guerra stated.
Will Brazil Get A Strategic Bitcoin Reserve?
Guerra’s comments underscored Bitcoin’s inherent value, particularly its scarcity and deflationary nature—qualities that set it apart from fiat currencies that can be produced without limitation. He argued that an official Bitcoin reserve could enhance Brazil’s resilience against global economic shocks and geopolitical instability.
In a parallel development, Congressman Eros Biondini has introduced a legislative bill known as PL 4501/2024 aiming to authorize the creation of a Sovereign Strategic Reserve of Bitcoins, or RESBit. Biondini argues that this initiative could safeguard Brazil against currency fluctuations and geopolitical uncertainties, thereby diversifying the government’s international reserves.
The proposal outlines an investment ceiling of 5% of Brazil’s total international reserves, which stood at $366 billion as of December. This means that, if approved, Brazil could potentially invest up to $18.3 billion in Bitcoin, contingent on market valuations at the time of execution.
The bill is currently under review in the Economic Development Committee of the Lower House, led by Rapporteur Luiz Gastão. It establishes a framework for gradual acquisitions of Bitcoin and emphasizes stringent security measures, including the utilization of cold wallets and cutting-edge AI and blockchain monitoring technologies.
Management of the RESBit would be a joint responsibility between the Central Bank and the Ministry of Finance, with an obligation for transparency through biannual reports to the public and Congress. The bill also acknowledges the importance of educational initiatives, proposing specialized training in blockchain technology, crypto-economics, and cybersecurity. Incentives, such as tax benefits for crypto startups, are also included in the legislative text.
To guarantee comprehensive oversight, a technical advisory committee comprising experts in blockchain, digital economies, and cybersecurity would be established. This committee would facilitate collaboration with international regulatory bodies and research institutions, drawing on global examples such as El Salvador’s adoption of Bitcoin as legal tender and the EU’s regulatory framework for digital assets.
The justification for this bill highlights that Brazil is one of the countries with the highest rates of cryptocurrency adoption, yet governmental policy has struggled to keep pace with the rapid developments in this field. As articulated in the proposed legislation, “The creation of RESBit will allow Brazil to diversify its international reserves, reducing exposure to foreign exchange fluctuations and geopolitical risks while increasing economic resilience. This measure will also position Brazil as a regional leader in financial and technological innovation, attracting external investment and strengthening our presence in the digital economy.”
At the time of writing, Bitcoin is trading at $86,205.
