On Wednesday, August 20th, Brazil will attract the attention of the Bitcoin community thanks to a hearing from lawmakers.
Federal Deputy Bureau Eros Biondini promoted by Bill 4501/2024 It proposes to allocate up to 5% of Brazil’s international reserve (approximately $170 million) to Bitcoin purchases As a strategic asset to diversify the national economy.
Today, such amounts arrive in the country to buy more than 147,000 BTC, with Bitcoin estimated at around $115,000 per unit, a currency that reached the past year’s maximum of $124,000.
Here it is, It seeks to protect Brazil’s international reserves against financial crisis, exchange rate fluctuations and geopolitical risks. The project also proposes positioning the country as a reference for innovation, promoting the use of cryptocurrency networks in the public and private sectors, and even stipulates that Bitcoin will serve as support for future Brazilian digital currency, Real Digital Real (DREX).
The initiative text reflects strict guidelines for managing responses. BTC purchases are in stages. Custody is carried out under high safety standards, such as cold portfolios and decentralized support protocols. Additionally, complete transparency is guaranteed through semi-annual reporting targeting Congress and society.
If this initiative is approved, The reserve government will be in charge of the Brazil Central Bank and the Ministry of Finance..
«The creation of Resbit is a strategic measure that places Brazil at the forefront of the new digital economy, reducing economic risks and expanding technical and financial development opportunities. The approval of this project is essential to ensure the economic sovereignty of the country and to align Brazil with global innovation trends.
Vice Eros Biondini.
Resbit also incorporates artificial intelligence as a central tool For its management and security. Central banks and the Ministry of Finance must design advanced monitoring and control systems that use technology based on cryptocurrency networks to ensure operational integrity.
They also received international experience as reference. In particular, they highlighted El Salvador, the first country to adopt Bitcoin as fiat currency in 2021, and the initiative attracted foreign investment and promoted financial inclusion for millions of citizens. Furthermore, the document mentions examples of the United States, Dubai and the European Union.
Bitcoiner, from Brazil, especially after a statement from Treasury Secretary Scott Becent, who said the government would only accumulate seizures rather than buying Bitcoin, he believes their country could benefit from the US conflicting signals, but later made it clear that he would continue to evaluate the strategy to increase ownership at no cost to the state’s administration.
International inspiration and attention from the central bank
While the Savior appears as an inspiration for the law, Brazil’s proposals establish a specific legal framework for investing in Bitcoin managed by state agencies, as occurs in Central American countries, without relying on the discretionary decisions of the President.
It should be noted that in the US, the Securities Commission (SEC) approval of Bitcoin-based Citation Funds (ETFs) emphasizes increasing liquidity and reliability for institutional investors and integrating Bitcoin as a compensation device for intrusions and economic crises.
It is also important to note that in March this year, Donald Trump signed an executive order to approve the establishment of a strategic Bitcoin Reserve. This was reported by Cryptootics.
Anyway, Resbit’s proposal is not exempt from criticism within the government. The central bank also provides reserves for, for example, for incorporation of Bitcoin into strategic reserves. Nilton David, director of monetary policy, described the assets as “too unstable,” warning that their unpredictability could put Brazil’s financial stability at stake.
While this project is creating expectations, the truth is that we must overcome the questions about Bitcoin volatility and associated financial risks. The audience on August 20th will be an important step Evaluate whether the initiative can achieve the necessary political consensus and move forward safely and sustainably.