Brazilian lawmaker Eros Biondini has introduced a bill to establish a national Bitcoin 
$96,622 reserve aimed at diversifying the country’s financial assets. The proposal suggests converting up to 5% of Brazil’s approximately $372 billion international reserves into Bitcoin. It highlights that a Bitcoin reserve could enhance economic resilience against currency fluctuations and geopolitical risks.
Targeting Economic Resilience with a Bitcoin Reserve
The bill outlines a gradual strategy for Brazil’s Bitcoin acquisitions. It cites innovative policies, such as Bitcoin being adopted as legal tender in El Salvador and the approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S. The proposal emphasizes that creating such a reserve could bolster Brazil’s economic diversity, making it stronger against currency crises.
Presto Research analysts Peter Chung and Min Jung noted similarities between this bill and U.S. Senator Cynthia Lummis’s Bitcoin Law 2024. Lummis’s proposal included regulations enabling a national Bitcoin reserve and allowing states to invest in Bitcoin. Similarly, a Pennsylvania lawmaker has introduced legislation to permit state treasury Bitcoin investments this month.
The Race for Bitcoin Among States Heats Up
Analysts suggest that Brazil’s initiative signals the start of a race among states to adopt Bitcoin. They describe this move as a land-grab competition for Bitcoin among countries, asserting that Brazil will not be the last to take such action. The concept of establishing a Bitcoin reserve aims not only to enhance economic diversity but also to position Brazil as a leader in the digital economy, with expectations for similar actions from other countries in the future.
