Federal Representative Eros Biondini has introduced a groundbreaking bill to establish the Sovereign Strategic Bitcoin Reserve (RESBit) in Brazil. The proposed legislation aims to diversify the country’s financial assets, protect international reserves, and foster the development of blockchain technologies.
How it works: Under the bill, the Central Bank of Brazil and the Ministry of Finance would manage RESBit, which would be limited to 5% of Brazil’s international reserves.
- The acquisition of cryptocurrencies would be carried out in a planned, gradual, and transparent manner, with semiannual reports submitted to Congress and the public.
- The bill emphasizes the use of secure storage technologies, such as cold wallets. It also calls for the creation of a technical advisory committee to assist in RESBit-related decisions.
Zoom in: To support the initiative, the government would promote education and technological innovation through various measures.
- Services include developing university blockchain programs and providing subsidies and tax benefits to encourage startups in the sector.
- Representative Biondini stated, “The formation of RESBit is a strategic step to position Brazil as a leader in the new digital economy. It offers the potential to reduce economic risks, foster technological development, and align Brazil with global innovation trends.”
Zoom out: In the United States, the idea of a national Bitcoin Strategic Reserve is gaining traction under President-elect Donald Trump’s incoming pro-crypto administration.
- Senator Cynthia Lummis’ Bitcoin Act of 2024 outlines a plan for the U.S. government to purchase 1 million bitcoins over five years as a solution to help address the country’s debt deficit.
- The process of transferring the monetary system from fiat-based to bitcoin-based would involve flooding global markets with dollars while simultaneously accumulating bitcoin. As bitcoin appreciates, it would theoretically offset the hyperinflating dollar.
Other countries listed in the proposal as examples include:
- El Salvador: First country to adopt bitcoin as legal tender in 2021, attracting foreign investments and promoting financial inclusion.
- China: Heavy investment in blockchain technology despite banning cryptocurrencies.
- United Arab Emirates: Created a favorable regulatory environment, attracting global blockchain initiatives.
- European Union: Introduced “Markets in Crypto-Assets” regulations for secure integration of cryptocurrencies
On prediction market platforms: Both Kalshi and Polymarket offer an event contract on the likelihood of Donald Trump setting up a national Bitcoin reserve, and they also allow traders to forecast the future price of Bitcoin.
- On Kalshi, the current market odds surged to 60%, with the resolution date set for Jan. 1, 2026.
- On Polymarket, the probability is at 30%, focusing mainly on whether the reserve would be established within the first 100 days of Trump in office.
- The odds across platforms suggest a bearish view on the short-term feasibility but a bullish view towards Trump’s ability to implement such a policy during his upcoming presidency.
The bottom line: Brazil’s Sovereign Strategic Bitcoin Reserve proposal highlights the growing global adoption of cryptocurrencies. If approved, the bill would mark a significant milestone in Brazil’s efforts to embrace the digital economy in an increasingly technology-driven world.
