On June 12th, it was reported that the Brazilian Chamber of Deputies is reviewing Bill No. 4501 of 2024. If the bill is passed, Brazil will establish a Bitcoin sovereign strategic reserve (RESBit) and plans to use up to 5% of its international reserves to purchase Bitcoin. This move has drawn widespread attention worldwide.
There are multiple strategic considerations behind this proposal. The bill aims to diversify the Treasury’s asset allocation and reduce reliance on traditional assets by investing in Bitcoin, thereby resisting exchange rate fluctuations and geopolitical risks. At the same time, this measure is also intended to promote the development of blockchain technology in Brazil and help Brazil seize the initiative in emerging digital technology fields. In addition, the establishment of the Bitcoin strategic reserve can also provide support for the Brazilian Digital Currency (Drex) and improve the domestic digital currency ecosystem.
In terms of reserve management, the reserve will be jointly managed by the Central Bank of Brazil and the Ministry of Finance to ensure the scientific nature and authority of the decision-making. To ensure the security of Bitcoin assets, the management will adopt advanced security technologies such as cold wallets to minimize the risk of theft or loss to the greatest extent. Furthermore, a strict transparency mechanism will be established to regularly disclose the relevant reserved information, accept public supervision, and enhance the credibility of the policy.
At present, the presenter, Member of Parliament Luiz Gastao, has voted in favor of the bill. He emphasized that during the implementation process, a cautious and gradual strategy would be adopted to fully assess and balance potential benefits and risks. This means that even if the bill is passed smoothly, the establishment of the Bitcoin strategic reserve will be a gradual process. The Brazilian government will explore new models for digital asset reserves under the premise of ensuring financial stability.
If this move by Brazil is successfully implemented, it will become an important attempt to establish a strategic reserve of Bitcoin at the national level on a global scale. It will not only have a profound impact on Brazil’s own financial system, but also may provide a reference for other countries in their digital currency reserve policies, triggering a new round of global thinking and discussion on the strategic layout of digital assets at the national level.
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