In a significant development, Brazil’s Chamber of Deputies is set to deliberate on a novel bill that aims to establish a Strategic Bitcoin Reserve for the nation. This move, proposed by Member of the Chamber of Deputies Eros Biondini, could potentially be a major milestone in Bitcoin’s journey towards wider adoption among countries.
The bill suggests that Brazil allocate up to 5% of its international reserves to purchase Bitcoin, thereby diversifying the country’s national assets. The Congressman views the ‘Bitcoin Strategic Sovereign Reserve’ as a means to safeguard against exchange rate fluctuations and geopolitical risks. If approved by Congress, Brazil could potentially acquire Bitcoin worth up to $3 billion.
This development is likely to have a positive impact on the Bitcoin price, as more countries show an inclination towards adopting the leading cryptocurrency as a reserve asset. Brazil appears to be following in the footsteps of El Salvador and Bhutan, which have already embraced Bitcoin strategies.
It is also notable that the United States, under the incoming President-elect Donald Trump, is expected to create a Strategic Bitcoin Reserve. Trump, prior to his inauguration on January 20, 2025, is reportedly making arrangements to bring this reserve into existence. CoinGape has reported that the president-elect intends to form a Crypto Advisory Council responsible for setting up the Strategic Bitcoin Reserve.
Additionally, pro-crypto Senator Cynthia Lummis has introduced a bill for the US to purchase up to 1 million BTC over five years.
In contrast to the US, if Brazil’s bill passes, it will have to start from scratch as current Bitcoin Treasuries data indicates that the country does not currently hold any BTC. Interestingly, Venezuela is the only South American country that holds Bitcoin (240 BTC). However, Brazil is not new to the crypto space, with crypto exchange-traded funds (ETFs) already trading on its stock exchange and experiencing a recent surge in demand as Bitcoin neared $100,000.
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