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Brazilian lawmakers have proposed creating a national Bitcoin (BTC) reserve to strengthen the country’s economy. The bill suggests that Brazil invests 5% of its $372 billion international reserves in Bitcoin. According to the bill, this investment will happen gradually to manage risks.
Bitcoin Reserve Comes With Lots of Benefits
The proposal highlights that Bitcoin could be a good way for Brazil to protect itself during uncertain economic times, like currency drops or political issues. Supporters believe Bitcoin’s addition to Brazil’s reserves could mix up the country’s assets and lessen its dependence on regular currencies. Likewise, it could improve financial stability when the economy is unstable.
Furthermore, the proposal includes a step-by-step plan to buy Bitcoin, which will help reduce the impact of market fluctuations on Brazil’s reserves. This careful approach aims to smoothly integrate Bitcoin into the country’s financial system while allowing time to evaluate its effectiveness as a reserve asset.
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If adopted, the move would mark a significant milestone in Brazil’s financial strategy and set an example for other nations considering similar measures.
Following the Lead of Bitcoin Advocates
Some days ago, Slawomir Mentzen, a leading candidate in Poland’s 2025 presidential race, pledged to establish a national Bitcoin reserve if elected. Mentzen’s promise reflects a growing trend of political leaders embracing Bitcoin as a strategic asset. Notably, Mentzen’s commitment mirrors a similar proposal by U.S. President-elect Donald Trump, who pledged during his campaign to establish a “strategic Bitcoin Stockpile.”
In July, Senator Cynthia Lummis introduced legislation to create a BTC reserve for the U.S., targeting the acquisition of one million BTC over five years. The bill aims to hedge against national debt while holding the asset for at least two decades. Globally, countries like El Salvador and Bhutan have embraced Bitcoin as part of their national financial strategies.
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Under President Nayib Bukele, El Salvador became the first country to legalize BTC as a legal tender in 2021. It has since amassed over 5,748 Bitcoin.
Brazil is the Largest Crypto Market in LATAM
The popularity of crypto assets in Brazil has positioned the country as a critical player in the global crypto market. Brazil has gained attention from investors and industry players, especially after pioneering the approval of the Solana ETF in August.
In addition, Brazil’s regulatory framework has made it an appealing destination for major exchanges, including Ripple, Binance, and investors. The country’s strategic location as the largest economy in Latin America adds to its allure as a hub for crypto businesses looking to expand within the region.
