Brazil: the deputy Eros Biondini proposes Bitcoin as a strategic reserve in the country

In Brazil, the federal deputy Eros Biondini has presented a bill that aims to establish the Sovereign Strategic Reserve of Bitcoin (RESBit). In practice, this measure wants to include BTC in the financial management of the Brazilian government.

Brazil and the bill proposal by Eros Biondini to include Bitcoin as a strategic reserve

The federal deputy of Brazil, Eros Biondini, has presented a new bill that aims to include Bitcoin as a strategic reserve of the country

Deputado federal Eros Biondini (PL-MG) apresentou um projeto de lei propondo a criação da Reserva Estratégica Soberana de Bitcoins pelo governo brasileiro. pic.twitter.com/p17RwVeFol

— Livecoins (@livecoinsBR) November 26, 2024

“The federal deputy Eros Biondini (PL-MG) has presented a bill proposing the creation of a sovereign strategic reserve of Bitcoin by the Brazilian government.”

Specifically, Biondini proposed to establish a strategic sovereign Bitcoin Reserve (RESBit), in order to integrate BTC into the financial management of the Brazilian government.

This is a proposal for diversification up to 5% of Brazil’s international reserves, with the planned acquisition of bitcoin

In this way, according to Biondini, Brazil could protect itself from various currency fluctuations and geopolitical risks, as well as witness an increase in the use of blockchain technologies

Not only that, the integration of Bitcoin as a strategic reserve of the country will serve to guarantee support for the Real Digital (Drex).

Bitcoin in Brazil as the Country’s Strategic Reserve?

Regarding Bitcoin as a strategic reserve of the country, Biondini wrote the following in his proposal:

“The constitution of RESBit is a strategic measure that positions Brazil at the forefront of the new digital economy, reducing economic risks and expanding opportunities for technological and financial development. The approval of this project is essential to ensure the economic sovereignty of the country and align Brazil with global innovation trends.”

In any case, the RESBit will be managed by the Central Bank in collaboration with the Ministry of Finance, which will develop advanced monitoring s based on artificial intelligence and blockchain.

To succeed in this endeavor, Biondini has proposed to implement security measures such as cold wallets and decentralized backup protocols.

The project also includes the creation of a technical advisory committee composed of experts to assist in making strategic decisions.

Not only that, in addition to financial diversification, the RESBit could become something more. The proposal mentions educational programs on blockchain and cybersecurity, as well as incentives for startups in the sector

The idea of Biondini is that the integration of Bitcoin into Brazil’s reserve could attract investments and strengthen the country’s economic sovereignty. This vision takes inspiration from international experiences like El Salvador

The latest news on Brazil’s CBDC

Remaining in the Brazilian territory, it has recently emerged that the Drex CBDC pilot project has reached its second phase.

In fact, the pilot project of Brazil’s CBDC is involving Chainlink, Microsoft, and Banco Inter to make transactions more secure, transparent, and efficient

Announcing this second phase was precisely the Banco Central do Brasil (BCB), stating that the program aims to revolutionize cross-border transactions. Not only that, but the automation of trade finance using blockchain and decentralized oracles will also be tested

A crucial aspect of this phase is the tokenization of essential documents such as electronic bills of lading (eBOL). From here, mechanisms like delivery versus payment (DvP) and the simultaneous settlement of payments in different currencies (PvP) will then be integrated.

The Cross-Chain Interoperability Protocol (CCIP) by Chainlink enables communication between different blockchain platforms and facilitates cross-platform transactions.