Key Takeaways
- Brazil plans to allocate $18.6 billion for a Bitcoin reserve.
- The reserve would support the CBDC Drex and protect against risks.
- Educational programs and blockchain research are key aspects of the initiative.
Brazilian lawmaker Eros Biondini has introduced a bill to establish the Bitcoin Sovereign Strategic Reserve (RESBit), allocating up to $18.6 billion—5% of Brazil’s international reserves as of September—into Bitcoin.
The initiative aims to modernize Brazil’s financial strategy, mitigate exchange rate and geopolitical risks, and bolster its central bank digital currency (CBDC), Drex.
Bitcoin adoption
The proposal highlights the growing global integration of Bitcoin in finance, citing examples such as El Salvador’s Bitcoin adoption and the US Bitcoin ETF approvals
Biondini emphasized the importance of positioning Brazil as a leader in the digital economy, stating:
The formation of RESBit is a strategic measure that positions Brazil at the leadership of the new digital economy.
Bitcoin custody
If passed, Brazil’s Central Bank and Ministry of Finance would oversee BTC custody, with mandatory biannual reporting on acquisitions, performance, and risks.
Adoption
Currently, Brazil ranks 10th in the global crypto adoption index, with the second-largest crypto inflows worldwide between 2022 and 2023, according to Chainalysis.
The RESBit initiative could further solidify the country’s role in the global digital economy.
