Brazil Congressman Proposes National Bitcoin Reserve to Hold 5% of Reserves
A Brazilian congressman, Eros Biondini, has proposed creating a national bitcoin reserve called ResBit. This bill suggests that Brazil's central bank gradually purchase bitcoin until it constitutes 5% of Brazil’s national reserves.
This initiative aligns with efforts in the United States, where Republican Senator Cynthia Lummis is advocating for a national bitcoin reserve. Lummis plans to reintroduce her proposal, which involves acquiring 1 million bitcoins over five years, held for at least 20 years. She argues this could help address the national deficit and strengthen the economy. “It’s gaining momentum,” she stated, emphasizing the need for Congressional support.
Biondini’s bill reflects how countries like El Salvador and the U.S. are integrating cryptocurrencies into their financial systems. The proposal asserts that investing in bitcoin would enhance financial sovereignty and promote economic growth in Brazil.
Both Brazil’s and the U.S.’s proposals involve holding bitcoin in cold storage for security and mandate public reporting of transactions. However, while Lummis’s bill enforces a 20-year holding period, Brazil’s proposal does not specify a timeline for potential sales of the bitcoin.
Despite Trump's support for bitcoin, experts indicate that the U.S. faces significant challenges before such legislation can be enacted. Nevertheless, Polymarket indicates a 25% chance that Trump may announce a bitcoin reserve within his first 100 days in office.
As nations like Brazil and the U.S. evaluate bitcoin as a strategic asset, discussions on incorporating cryptocurrencies into national financial policies continue to gain traction.