Will Brazil buy Bitcoin? That will discuss Congress tomorrow

This Wednesday, August 20, Brazil will concentrate the attention of the Bitcoiner community thanks to a public hearing in the Chamber of Deputies, which will discuss the creation of a Sovereign Strategic Reserve of Bitcoin (BTC) called as the Resbit.

Promoted by federal deputy Eros Biondini, the bill 4501/2024 proposes to allocate up to 5% of the international reserves of Brazil – about 17,000 million dollars – to the purchase of Bitcoin as a strategic asset, in order to diversify the national economy.

Today, such amount would reach the country to Buy more than 147,000 BTCwith Bitcoin quoting around $ 115,000 per unit, a currency that reached last week a historical maximum of $ 124,000.

This way It seeks to shield international reserves of Brazil against financial crises, exchange rate fluctuations and geopolitical risks. The project also proposes to position the country as a reference in innovation, promoting the use of cryptocurrency networks in the public and private sectors, and even provides that Bitcoin serves as support for the future Brazilian digital currency, the real digital real (DREX).

The text of the initiative reflects strict guidelines for the management of the response: the purchase of BTC would be gradual; The custody would be carried out under high safety standards, including cold portfolios and decentralized support protocols; and total transparency is guaranteed through semiannual reports aimed at Congress and society.

In case this initiative is approved, The reserve administration will be in charge of the Central Bank of Brazil and the Ministry of Finance.

«The creation of the Resbit is a strategic measure that positions Brazil at the forefront of the new digital economy, reducing economic risks and expanding the opportunities for technological and financial development. The approval of this project is essential to guarantee the country’s economic sovereignty and align Brazil with global innovation trends.

Deputy Eros Biondini.

The Resbit also incorporates artificial intelligence as a central tool for its management and security. The Central Bank and the Ministry of Finance must design advanced monitoring and control systems that use the technologies based on cryptocurrency networks, to guarantee the integrity of operations.

They have also taken international experiences as a reference. In particular they highlight El Salvador, the first country to adopt Bitcoin as legal tender in 2021, where the initiative attracted foreign investments and promoted the financial inclusion of millions of citizens. In addition, the document mentions examples of the United States, Dubai and the European Union.

Bitcoiners from Brazil consider that their country could benefit from the contradictory signals of the United States, especially after the statements of the Treasury Secretary, Scott Besent, who said that the Government will not buy Bitcoin, but that it will only accumulate the seizure, although later clarified that they continue to evaluate strategies to increase their holdings without generating expenses in the state.

International inspirations and caution from the Central Bank

Although the Savior appears as inspiration for the law, the Brazilian proposal establishes a specific legal framework to invest in Bitcoin, managed by state agencies and without depending on discretionary decisions of a president, as occurs in the Central American country.

It should be noted that, in the case of the US, the approval of quoted funds (ETF) based on Bitcoin by the Securities Commission (SEC), which increased the liquidity and confidence of institutional investors, consolidating the Bitcoin as an instrument of coverage against inflation and economic crises, is highlighted.

It is also important to mention that, in March of this year, Donald Trump signed an executive order authorizing the creation of a strategic Bitcoin reserve in the government. This was reported by cryptootics.

The proposal of the Resbit is not exempt from criticism within the government. And it is that the Central Bank, for example, has shown reserves about the incorporation of Bitcoin into the strategic reserve: Nilton David, director of monetary policy, described the asset as “too volatile”, warning that its unpredictability could put at risk the financial stability of Brazil.

Although the project has generated expectations, the truth is that it must still overcome questions about Bitcoin’s volatility and associated financial risks. The audience of August 20 will be a crucial step To evaluate whether the initiative can achieve the necessary political consensus and advance safely and sustainably.