Brazil’s Chamber of Deputies Economic Development Commission is gearing up for its first hearing on Aug. 20 to discuss a groundbreaking proposal – the establishment of a Bitcoin Strategic Reserve (RESBit) valued at up to $18.6 billion. The aim of this initiative is to modernize Brazil’s treasury management and boost competitiveness in the global digital economy.
Deputy Luiz Philippe de Orleans e Bragança has called for this hearing to gather insights from government agencies and financial institutions on the RESBit proposal. The proposed legislation seeks to diversify Brazil’s Treasury assets and safeguard international reserves against exchange rate fluctuations and geopolitical risks.
The upcoming session will feature expert speakers such as Diego Kolling, the head of Bitcoin strategy at Méliuz, and Julia Rosim, the coordinator of the ABcripto policy working group and head of public policy at Bitso. The discussion will shed light on the legislative framework and market context surrounding the RESBit proposal.
Lawmaker Eros Biondini spearheaded the introduction of the legislation, drawing inspiration from countries like El Salvador, the United States, China, Dubai, and the European Union that have successfully integrated blockchain technology. The bill mandates custody responsibilities to Brazil’s Central Bank and Finance Ministry, along with requirements for biannual reports on RESBit performance and risk assessments.
Brazil has emerged as a leader in crypto adoption within Latin America and ranks 10th globally according to Chainalysis’ Geography of Crypto report 2024. With nearly $76 billion in crypto trades recorded last year, the country is positioned as a key player in the digital asset market.
The proposal aligns Brazil with other nations exploring digital asset reserves as a means to hedge against traditional currency. Following the Aug. 20 hearing, the proposal will undergo conclusive analysis by four Chamber committees before advancing to full Chamber consideration. Approval from both the Chamber of Deputies and the Senate is required for the bill to become law, setting the stage for a comprehensive legislative review process.
The technical insights gathered from the hearing will play a crucial role in shaping the committee evaluations and potential text modifications during the review phases. Orleans e Bragança is actively seeking input from monetary authorities, government officials, banking system representatives, and subject matter experts to refine the proposal text.
As the legislative process unfolds, the aim is to gather Central Bank technical analysis before the committee markup sessions begin, ensuring that the legislation is fine-tuned to effectively establish the Bitcoin reserve in Brazil. This forward-thinking initiative holds the potential to reshape the country’s financial landscape and position it at the forefront of the digital economy.