Hints of Consensus Around Bitcoin as a Reserve Asset in Brazil Arises

A high-ranking official has called for a deeper debate regarding bitcoin as a reserve asset in Brazil, calling it “internet’s gold.” While President Lula’s government has been neutral about cryptocurrency, there is already a proposal to create a bitcoin reserve pending in Congress.

Discussion Around Bitcoin Strategic Reserve Heats up in Brazil

Positive signs are starting to appear that hint at a newfound positive stance on the enactment of a strategic bitcoin reserve in Brazil. While President Luiz Inacio Lula da Silva has not referred personally to the subject, the proposal is being considered in high echelons of the political establishment.

According to local media, Pedro Giocondo Guerra, chief of staff of Vice-President Geraldo Alckmin, believes that bitcoin has merit to be part of Brazil’s foreign reserves. In the recent inauguration of the Parliamentary Front for a Competitive Brazil, a bloc focused on passing regulations to improve Brazil’s competitiveness, Guerra stated:

Debating rigorously the creation of a sovereign reserve of bitcoin value is in the public interest and will be crucial to our prosperity. After all, bitcoin is digital gold, the internet’s gold.

Guerra spoke highly of bitcoin’s traits, remarking on its value as a transactional tool and as a store of value. “It is a technology that allows us to transfer wealth from one end of the planet to the other with agility and store the fruits of our labor efficiently and securely,” he stated.

Brazil was one of the first nations to introduce regulations to convert part of their foreign reserves to bitcoin. The bill, introduced by Federal Deputy Eros Biondini in November, calls for the establishment of a strategic bitcoin reserve with the allocation of 5% of the total foreign reserves of Brazil.

While the Trump administration has enacted a bitcoin reserve with close to 200K BTC seized in different cryptocurrency-linked legal actions, Brazil’s proposal is different, as it encompasses direct purchases of bitcoin using international reserves approved by the nation’s lawmakers and not pushed just via an executive order.

Read more: Brazil Introduces Bill to Establish Strategic Bitcoin Reserve