[NEWS]Brazil introduces bill to create Bitcoin reserve

It has been revealed that a bill to create a Bitcoin (BTC) reserve has been submitted in South America's Brazil.

According to a post by Bitcoin Magazine on the 27th, the bill was submitted to prepare for the impact of rising geopolitical risks and protect the Brazilian economy.

The bill will allocate 5% of Brazil's strategic reserves to Bitcoin. In addition to considering geopolitical risks, it also aims to promote the adoption of blockchain by public institutions and private companies.

There is also a possibility that Bitcoin will be used as a collateral asset for the CBDC (central bank digital currency) "Drex (digital real)," which is currently being piloted and is being issued by the Central Bank of Brazil.

The bill will be submitted to the House of Representatives, and if passed, it will be sent to the Senate. After that, it will be passed by the Senate and signed by the President for enactment and implementation. At this point, it is unknown whether the bill will be passed.

Brazil's move could be seen as a response to the United States. In July of this year, Republican Senator Cynthia Lummis introduced the "Bitcoin Act of 2024," which aims for the United States to stockpile 1 million BTC as a strategic reserve. At the time of writing, 1 million BTC is worth approximately 14.5 trillion yen.

Apart from this bill, President-elect Trump has also expressed his view that the United States should not sell the Bitcoins it has seized so far, but should instead hold and stockpile them as the core of its reserve assets. Although details have not been disclosed, the US government's move to hold a large amount of Bitcoin could have a major impact on the cryptocurrency market.

Reference: Bitcoin Magazine
Image: Shutterstock

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