Strategic Bitcoin Reserves proposed by Brazil’s Vice President Advisor

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Brazil’s vice president Geraldo Alkmin (PSB) Chief of Staff Pedro Giocondo Guerra on Wednesday emphasized the importance of establishing a national strategic Bitcoin protected area. Guerra speaks at the oath-in-place ceremony of the new president of FPBC (competing Brazilian parliamentary front), Vice President Júlio Lopes (PP-RJ), while representing the Government of President Lula Lula Da Silva (PT).

“It is in the public interest to strictly debate the composition of sovereign reserves of Bitcoin’s value and will be decisive for our prosperity. Bitcoin is digital gold, after all, the gold of the Internet. It is a technology that allows us to spread wealth from one end of the planet to the other and store our labor efficiently as efficient and firmly,” Guerra stard of Guerra.

Will Brazil obtain strategic Bitcoin reserves?

His remarks emphasize the inherent attraction of Bitcoin – especially its digital scarcity and deflated design, compared to fiat currencies that can be printed at will. Guerra noted that official BTC reserves could enhance the country’s resilience and adaptability, especially in global economic and geopolitical volatility.

It is worth noting that Congressman Eros Biondini (PL-MG) has launched PL 4501/2024, which will allow the creation of a sovereign strategic reserve for Bitcoin and cited the bill under Resbit’s provisions. According to Biondini, the main goal is to prevent Brazil from currency fluctuations and geopolitical uncertainty by diversifying the government’s international reserves.

This article proposes that the country’s international reserves account for a limit of 5% of Bitcoin acquisitions (total of US$366 billion in December). If it passes, Brazil will be authorized to invest up to $18.3 billion in Bitcoin at the time of drafting the valuation of the reserve.

The bill is currently under review by Luiz Gastão (PSD-CE) (PSD-CE) in the House of Commons Economic Development Committee, which sets out step-by-step guidelines and highlights strong security measures for the use of cold wallets and advanced AI- and blockchain-based monitoring.

The legislation details how the central bank and the Treasury will jointly manage Resbit, thereby ensuring transparency through regular biennial reports to the public and Congress. Additionally, the text addresses the need for education and innovation programs, including specialized courses on blockchain, crypto economics and cybersecurity, and incentives such as tax incentives for crypto-related startups.

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A technical advisory committee composed of experts in blockchain, digital economy and cybersecurity will also be established to ensure strict oversight and promote collaboration with international regulatory agencies and research institutions. The proposal cites global precedents such as El Salvador’s adoption of Bitcoin as a fiat tender, U.S. approval of BTC ETFs, China’s investment in blockchain and digital currency efforts, Dubai’s success in developing a blockchain-friendly business environment, and the EU’s regulatory framework for digital assets.

In its rationale section, the bill argues that Brazil is already one of the countries with the highest adoption of cryptocurrency rates, but government policies are not in sync with the rapid development of the market.

According to the text, “The creation of RESBIT will enable Brazil to diversify its international reserves, reduce the impact on foreign exchange volatility and geopolitical risks while increasing economic resilience. This measure will also position Brazil as a regional leader in financial and technological innovation, attracting external investment and attracting our presence in the digital economy.”

At press time, BTC was trading at $86,205.

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