A high-ranking official in Brazilian President Luiz Inácio Lula da Silva's administration declared Tuesday that a potential strategic Bitcoin reserve would be "determinant for our prosperity" and "in the (country’s) public interest."
Pedro Giocondo Guerra, chief of staff to Vice President Geraldo Alckmin, made the remarks while officially representing the federal government at a congressional ceremony.
Debating the establishment of a sovereign bitcoin reserve rigorously is a matter of public interest and will be crucial for our prosperity,” Guerra said according to local media outlet Poder360. “Bitcoin is digital gold—the gold of the internet. It is a technology that allows wealth to be transferred across the globe swiftly and enables us to store the fruits of our labor efficiently and securely.”
The statement underscored the country’s heightened interest in Bitcoin amid a growing list of countries that have made it part of their political strategies.
Guerra’s comments came shortly after deputy Eros Biondini (PL-MG) introduced legislation proposing the creation of a "Strategic Sovereign Bitcoin Reserve" (RESBit). That bill would mandate the government acquire Bitcoin up to 5% of Brazil's international reserves, with the Brazilian Central Bank handling custody using advanced monitoring systems and blockchain technology and AI to monitor transactions.
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Brazil's existing crypto landscape is already robust. The country started approving spot cryptocurrency ETFs before any other nation in the Americas and offers diverse investment vehicles. These include FOMO11, which tracks market sentiment, DEFI11 for a basket of DeFi coins, HASH11, one of the most traded ETFs in the Brazilian market, and even a Solana spot ETF approved on august 2024.
The proposed legislation outlines multiple objectives for the Bitcoin reserve. These include diversifying the National Treasury's financial assets, protecting international reserves against currency fluctuations and geopolitical risks, promoting blockchain technology adoption across public and private sectors, and providing backing for Brazil's controversial CBDC, the DREX.
If approved, the bill would require the government to implement the reserve gradually while adhering to fiscal responsibility laws and ensuring public account stability. The legislation also mandates transparent management with biannual reports to Congress.
The bill must still navigate the full legislative process, requiring approval from various committees, passage in both the Chamber of Deputies and the Senate, and finally presidential approval or veto.
According to Biondini's proposal, the Bitcoin reserve would position Brazil "at the forefront of the digital economy" and increase the country's economic resilience by reducing exposure to currency fluctuations and geopolitical risks.
The bill references Brazil's high adoption rate of cryptocurrencies, noting that in 2022, approximately 16% of the Brazilian population reported having used or owned crypto assets according to research by Finder. It argues this widespread adoption should be reflected in government strategy to avoid putting the country at a disadvantage internationally.
El Salvador famously declared Bitcoin legal tender and has been acquiring one Bitcoin daily for its national reserves, reportedly generating significant profits through the asset's appreciation. Venezuela has also established a regulatory framework for cryptocurrencies and allegedly holds some Bitcoin in its international reserves. Colombia conducted a sandbox to evaluate how bank institutions could work alongside crypto exchanges to provide financial services.
Earlier this month, The proposal follows an executive order signed by the U.S. President Donald Trump on March 6 that established an American Bitcoin reserve using cryptocurrency seized in law enforcement operations. and prohibited further sales of the digital assets.
Edited by James Rubin
