Brazil Proposes Creating a National Bitcoin Reserve
Date: 2024-11-28 Author: Oliver Abernathy Categories: IN WORLD
According to the proposal, Brazil will gradually increase the share of bitcoins in its foreign exchange reserves to 5%. Given the country's total gold and foreign exchange reserves, which amount to $366 billion (according to the Central Bank as of October 2024), the bitcoin reserve could reach $18.3 billion, which is equivalent to approximately 195,000 bitcoins at the current price of $94,000.
The reserve is supposed to be managed by the Central Bank and the Ministry of Finance of Brazil. To ensure the security of assets, it is proposed to use "cold" wallets and other modern security methods. Artificial intelligence technologies will be used to monitor the reserves, and twice a year it is planned to publish reports for Congress and the general public.
The explanatory note to the bill notes that such a reserve will provide the country with a leading position in the field of digital economy. El Salvador is cited as an example, having legalized Bitcoin in 2021. Despite the difficulties, this has helped attract investment and expand citizens' access to financial services.
Other examples of countries are also mentioned: China, which is actively developing blockchain technologies despite the ban on cryptocurrencies, and Dubai, which has become the center of the crypto industry. The European Union, for its part, is integrating cryptocurrencies, striving for safe and transparent regulation.
Today, about 16% of the Brazilian population owns or uses cryptocurrencies. However, the lack of a state strategy in this area puts the country in a vulnerable position on the international stage, the author of the bill claims.
Biondini also noted the importance of adopting Bitcoin ETFs in the United States, which have increased liquidity and trust in cryptocurrencies among institutional investors. Bitcoin has begun to be seen as a hedge against inflation and economic shocks.
Donald Trump's victory in the US presidential election, according to analysts, could accelerate the creation of Bitcoin reserves by other countries. Binance CEO Changpeng Zhao stressed that in the race for Bitcoin, “no one wants to be the last one.” It is also reported that Morocco, where cryptocurrencies have been banned since 2017, is considering legalizing them. The country’s central bank has prepared a draft law on cryptocurrency regulation, which is currently under discussion.
