Brazil Proposes $18.6 Billion Bitcoin Reserve to Diversify Assets
Brazilian Congressman Eros Biondini has launched a historic proposal to create a national Bitcoin reserve called the “Reserva Estratégica Soberana de Bitcoins” (RESBit).
The bill will allocate up to 5% of Brazil’s $372 billion in foreign reserves – that’s $18.6 billion – to Bitcoin.
Biondini says that having Bitcoin in the reserves will make Brazil more resilient, so the country can better withstand currency fluctuations and geopolitical risks. It’s another country joining the trend of exploring Bitcoin as an asset.
The bill was sent to the Chamber of Deputies on November 26, 2024 and already there’s a lot of interest among Brazilian lawmakers and experts.
Global Momentum for Bitcoin Reserves
Brazil is not the only one considering Bitcoin in the reserves. The bill mentions global initiatives such as El Salvador’s Bitcoin as legal tender and US Bitcoin ETF. Presto Research analysts Peter Chung and Min Jung say that Brazil’s proposal is part of a global trend to include Bitcoin in national strategies.
Recent examples include:
U.S. Initiatives: Senator Cynthia Lummis’ Bitcoin Act 2024 outlines a framework for federal and state-level Bitcoin reserves.
Polish Advocacy: Presidential candidate Sławomir Mentzen has pledged to establish a Bitcoin reserve if elected.
Texas Exploration: Texas lawmakers are reportedly drafting legislation to create a state Bitcoin reserve, as confirmed by Dennis Porter, CEO of the Satoshi Action Fund.
And President-elect Donald Trump’s campaign promises included a strategic Bitcoin stockpile. So the political momentum for Bitcoin is building.
Corporate Adoption Gains Traction
It’s not just governments. Michael Saylor, executive chairman of MicroStrategy, will present a Bitcoin investment proposal to Microsoft’s board of directors. The proposal will be voted on by shareholders on December 10. Saylor’s proposal asks Microsoft to evaluate the benefits of investing in Bitcoin.
MicroStrategy is a pioneer in corporate Bitcoin adoption and has been aggressively buying Bitcoin. Now other big companies are following suit.
Key reasons driving Bitcoin’s appeal for corporations and governments alike include:
Hedge Against Inflation: Bitcoin’s fixed supply makes it an attractive asset in inflationary environments.
Decentralization Benefits: Its decentralized nature reduces exposure to centralized economic risks.
Global Acceptance: Increasing adoption as legal tender and within financial markets boosts credibility.
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