A high-ranking officer in Brazilian President Luiz Inácio Lula da Silva’s administration stated Tuesday that a potentially strategic Bitcoin reserve would be “determining factor for our prosperity” and “in the public interest of (country).
Pedro Giocondo Guerra, Chief of Staff of Vice President Geraldo Alckmin, made the comments as he officially represented the federal government during a conference ceremony.
Debating about the creation of a sovereign Bitcoin -reserve rigorous is a matter of general interest and will be crucial for our prosperity, “Guerra said according to local media -outlet Poder360.” Bitcoin is digital gold – the gold from the internet. It is a technology with which wealth can quickly be transmitted all over the world and enables us to store the fruits of our work efficiently and safely. “
The explanation underlined the increased interest of the country in Bitcoin in the midst of a growing list of countries that made it part of their political strategies.
Guerra’s comments came shortly after deputy Eros Biondini (PL-MG) introduced legislation that proposed the establishment of a “strategic sovereign Bitcoin reserve” (ResBIT). That bill would draw up the government to acquire Bitcoin to 5% of the international reserves of Brazil, whereby the Brazilian central bank acts the detention with the help of advanced monitoring systems and blockchain technology and AI to check transactions.
The existing crypto landscape of Brazil is already robust. The country started with approving Spot Cryptocurrency ETFs for a different nation in America and offers various investment vehicles. These include FOMO11, which follows the market sentiment, Defi11 for a basket with Defi coins, hash11, one of the most traded ETFs on the Brazilian market, and even a Solana spot ETF approved on August 2024.
The proposed legislation outlines several objectives for the Bitcoin reserve. These include the diversification of the financial assets of the National Treasury, protecting international reserves against currency fluctuations and geopolitical risks, promoting the acceptance of blockchain technology in public and private sectors and providing support for the controversial CBDC of Brazil, the Drex.
If approved, the bill would require that the government gradually implement the reserve while complying with the tax responsibility laws and guarantees the stability of the public account. The legislation also requires transparent management with biennial reports to the congress.
The bill still has to navigate through the entire legislative process, for which approval of various committees, passage in both the Chamber of Representatives and the Senate is necessary, and ultimately presidential approval or veto.
According to Biondini’s proposal, the Bitcoin reserve Brazil “in the forefront of the digital economy” would position and increase the economic resilience of the country by reducing exposure to currency clamps and geopolitical risks.
The bill refers to the high adoptive percentage of cryptocurrencies of Brazil and noted that in 2022 about 16% of the Brazilian population reported that they had used Crypto assets or owned Finder research. It argues that this widespread acceptance must be reflected in the government strategy to prevent the country from being put to the disadvantage internationally.
El Salvador declared famous Bitcoin -Lazy Tender and has one bitcoin acquiring daily for his national reserves, reportedly generating considerable profit by the valuation of the asset. Venezuela has also established a regulation framework for cryptocurrencies and is reportedly what Bitcoin has in its international reserves. Colombia carried out a sandbox to evaluate how banking institutions can work with crypto fairs to offer financial services.
Earlier this month, the proposal follows an executive order that was signed by US President Donald Trump on 6 March that an American Bitcoin reserve has seized with the help of cryptocurrency with law enforcement operations. and prohibited further sale of the digital assets.
Published by James Rubin
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