Brazil is initiating discussions around a bill for a Bitcoin reserve, marking an important step for cryptocurrencies at the legislative level.
What the Bill Proposes
Bill 4,501/2024 aims to create a Sovereign Strategic Bitcoin Reserve (RESBit) under federal control. It mentions diversification, protection against currency and geopolitical shocks, as well as support for the implementation of a digital real (Drex). Deputy Luiz Philippe de Orleans e Bragança requested a hearing to enhance the bill's text.
Reserve Numbers and Their Significance
Supporters argue that a Bitcoin reserve would be a prudent hedge. The proposed cap of 5% suggests a possible allocation of about $18.6 billion. This could affect liquidity without disrupting exchange rate management.
Expert Opinions and Potential Scenarios
The hearing occurs amid ongoing discussions about sovereign cryptocurrency risks. Experts note that the reserve could influence risk perception throughout Latin America. Brazil's central bank emphasizes that virtual assets are not state obligations.
Brazil's approach to establishing a Bitcoin reserve could set a precedent for other countries, initiating open discussions about the role of digital assets in the economy.
