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National Reserve Proposal for Bitcoin from Brazil: Following in the footsteps of the United States! - Coin Bulletin
A Brazilian lawmaker has proposed a bill to create a Bitcoin reserve in order to diversify the country's financial assets.
On Monday, November 25th, Congressman Eros Biondini introduced a bill to the parliament proposing the creation of the 'Strategic Sovereign Bitcoin Reserve' (RESBit).
The proposal suggests a gradual purchase strategy for allocating up to 5% of Brazil's approximately 372 billion dollar international reserves to Bitcoin.
The draft states that creating a Bitcoin reserve could increase the country's economic resilience against exchange rate fluctuations and geopolitical uncertainties.
In addition, examples such as the acceptance of Bitcoin as the legal tender in El Salvador and the approval of spot Bitcoin exchange-traded funds in the US are mentioned to inspire innovative national strategies.
"Bitcoin Land Race Begins"
Presto Research analysts Peter Chung and Min Jung emphasized that Brazil's move is similar to the "Bitcoin Act 2024" introduced by U.S. Senator Cynthia Lummis in July. Lummis' bill proposes regulation that would allow the U.S. to hold Bitcoin and states to follow suit.
Similarly, earlier this month, a lawmaker in Pennsylvania introduced a new bill that would enable the state treasury to invest in Bitcoin.
Presto analysts said, "Nation-states have started a competition for 'land grabbing' for Bitcoin," saying that Brazil will not be the last country to progress in this way.