Topic: Just In: Brazil’s Congress Introduces Bill To Create Strategic Bitcoin Reserve (Read 416 times)

It's great to read a local perspective on it - much appreciated.
I do think it's partially because, of course - enthusiasts are here to discuss the matter, and in the broader view in the news of a country - that wouldn't be much of a deal.
Hopefully, we will see something good coming out of this situation.

Well. As a brazilian, I must say I don't see this really happening. Eros Biondini is a conservative congress man, and has some local/regional power/influence - but not enought to make this bill become a law.

At this moment, the government is really worried about short term matters (and the approval ratings going down and down every day).

Anyway, it is curious that this subject has been mentioned in international niches, but little or almost nothing in Brazil itself.

I think when the reserves show what they are for and are used in the end by bigger countries - others, especially smaller countries, would see the pluses of it and would probably try to implement something with BTC themselves.
Let's see, but it's still great and huge to see such news.

Yes, I was thinking what could be next for Bitcoin, or at least what could be the factors that will push the price to more than $100k, besides Trump winning the election. If I remember it correctly, 2017 it was CBoE and CME Bitcoin future contracts. And then in 2021, it was all institutions pushing money on the market, likes of Michael Saylor and MSTR and then El Salvador. So what will be this 2025? And with that I think more government around the world will think of Bitcoin or would consider it as a national reserve will be big for us as obviously when they buy, supply dwindle and so the price going to skyrocket. So let's see how it goes, seems that there are still some members who are in the fence about this news, but let's give them a try and see how it will affect the market overall.

Maybe others in the region would follow the suite, or maybe they would harden what they already have in terms of crypto - we never know, but we can hope and have faith in a positive result in the end.
 

This will be a next level for Bitcoin adoption if other countries will follow the pathway of the US, now Brazil, to have a national Bitcoin reserve. Although US and Brazil, are yet to pass it into law, it's however a great news for Bitcoin enthusiasts. You can't stop the shine of a good thing, it might take sometime for skeptics to have a paradigm shift but in the end everybody will identify with something that is an asset like Bitcoin. Hopefully when big countries like USA and Brazil, have Bitcoin reserves, it will motivate other countries to follow in their footstep. When this begins to happen, a decentralized asset like Bitcoin will be in the hands of individuals, institutions and governments, it'll become a win win for every category of hodlers.

That's a great news, especially if other countries follow this stance. It could produce billions of dollars of investment in cryptos, but we must stay cautious, many compagny and governement have already made big annoucements like that, and they finally didn't make anything sadly. So I hope they start to consider cryptos as serious assets now.

I don't see Portuguese, but I do understand it's a project law. While interesting, it doesn't mean much unless it has a strong chance of being approved. In my country, the decisive factor is usually the party from which it was proposed and the level of support of the proposed law both within society and by the president (the opinion of the latter usually is important to a significant number of MPs). How does it work in Brazil, and does this bill have any real chances?

It hasn't been signed yet which is why we shouldn't get too excited about this new development just yet. These bills come and go on a regular basis which is why this isn't exactly something new in the crypto world.

Also, the Brazil government is one of the most corrupt governments in the world which is why they have clear ulterior motives behind this bill if it is signed and put into action. Think people!

There is only one "small" problem when it comes to seized coins, and that is that it can happen that a government simply starts seizing coins and taking them for itself without any valid reason. I'm not just referring to some countries that are totally corrupt and where something like that is very likely, but also to Western democracies that have their mouths full of tainted coins that need to be confiscated and "cleaned".

I'm still in favor of the direct purchase option, although every government should ask its citizens what they think about it before doing it - because after all, it's their money.

But that's how Bitcoin is designed in the beginning by Satoshi, to be scarce and that's why the price is moving up every 4 years. And it also involved, it was supposed to be used for micro-payments, but not it is being treated like an asset and so everyone, including governments around the world is not seeing it as a good reserved strategically, I think there is nothing wrong with it.


What do you mean? You can still buy Bitcoin anytime and be a long term holder. The government can't control it, we know that is a fact. And we have been in this market for so long, average joe, and when big institutions enter the picture, we are still here and nothing has change.

I partly agree, but not because of fears about "scarcity". This is already happening: ETFs, Saylor, and other big Bitcoin buyers made Bitcoin more scarce this year already. In reality, since its inception Bitcoin is getting more scarce (in the long term), because there seems to be a growing demand surplus, and since at least 2015 it's out of reach for most people to mine Bitcoin. And thus, the price, as an indicator for scarcity, is increasing.

What the community should worry about are too strong individual governments or central banks, i.e. single entities holding extreme positions (e.g. millions), because these could indeed become too powerful (imo). We don't want Bitcoin to become a typical altcoin like ETH, where Vitalik Buterin alone could force a hard fork due to his immense holdings. Thus in a scenario where Bitcoin is used as a strategic reserve, it's better if this reserve is distributed.

Brazil is at least not talking about millions like Lummins does in the US, so I guess they're talking about a few thousands or at most 100.000 BTC in the long term (and as I wrote in an earlier post, approval of this bill is quite unlikely). If all Central Bank Bitcoin reserves total to a million approximately and none has more than 20% of these, then I see no dangers for the Bitcoin power equilibrium.

Not good! I am 100% sure that we do not want countries to create their strategic Bitcoin reserve at all. Bitcoin is supposed to be a currency system of the common people. With corporates and countries entering into the Bitcoin, it's going beyond the reach of the common people. We are not realising it now, but in a couple of years a scarcity will be created.

I personally do not want countries to create their own Bitcoin reserve. The power will be moved out of the hands of the common public.

The problem in the case of Bitcoin is that it depends a lot when you buy it, as long as it stays volatile.

What would have happened with El Salvador's Bitcoin reserve for example if the ETFs in the US were not approved? I personally still would have been bullish on Bitcoin, but there is the possibility that it could have taken a lot longer to reach break-even. Bukele also was lucky that his anti-Maras policy, which lowered the crime rate, ensured him popularity and this countered the unpopularity of his Bitcoin policy in the crypto winter 2022/23. In another case, it perhaps was possible that he'd be forced to sell for a loss for political reasons.

It's a bit of a problem that the topic of a Bitcoin Reserve tends to become popular in bullish phases. Thus the governments tend to "buy high". If they don't sell and hodl then the outcome may be positive even if they buy at the top of a bubble but take time. This is one of the reasons why I think the proposed policy to use seized Bitcoins to build up the reserve is better than to buy actively. Even if Bitcoiners like the "active buying" strategy because it fuels bullish movements.

Of course as a Bitcoin enthusiast it is natural to love this kind of news because this kind of news makes every Bitcoin enthusiast excited. We recently saw that Morocco announced the re-legalization of Bitcoin after outlawing it in their country in 2017, which I highlighted in a post about this board. Basically, one of the reasons why these countries are interested in Bitcoin is that the price of Bitcoin is increasing very high at present.

Brazilian lawmaker Eros Biondini recently took the initiative to reserve $18 billion worth of bitcoins. Brazilian lawmaker Eros Biondini believes the initiative will help modernize Brazil's technology and financial management to further advance the global digital economy. Moreover, the lawmaker also mentioned the countries that have achieved success by investing in Bitcoin. There he mentions El Salvador, which made Bitcoin legal tender in 2021.

Brazilian Lawmaker Proposes $18 Billion Bitcoin Reserve Initiative: https://cryptoslate.com/brazilian-lawmaker-proposes-18-billion-bitcoin-reserve-initiative/

How easy it is to misinterpret something if you don't know the language, or if you completely misunderstand what it is about. One opposition politician clearly wanted his five minutes in the spotlight - and since BTC is a very popular topic at the moment, he decided to take advantage of it. It seems like more and more little Donalds are appearing around the world - the problem is that they don't even have 1% of the power that the US president has.

Thanks for mentioning me  @BlackBoss_

There are some small articles in brazilian media, I like livecoins (which is owned by a bitcointalk member)  https://livecoins.com.br/deputado-propoe-criacao-de-reserva-estrategica-de-bitcoin-no-brasil/

Anyway, this house member is not very popular. Very few people know him, and he is not powerful.

I don't think this discussion is relevant now, and our country is much more worried about cutting government expenses.

I agree with him and I think Brazil should have a small reserves in bitcoin, but I don't think it will happen soon. Let's see how things go.

Am I wrong to be more excited about this than about The United States possibly doing the same thing?  Bitcoin made the life of a lot of people much better by proving being a value and implicitly increasing in value constantly.  While it may not necessarily SAVE an entire country, it has the possbility to improve its economical status.  Imagine a significant amount of Money, but not too much for a Government, was invested when Bitcoin was around a thousand Dollars.

I am excited for this experiment if it passes.  Not as excited about bigger and more developed countries doing it however.

Let's wait and see then.
ChatGPT is inclined to search for the data in the past first and foremost and if it's not there, he may say things that are more like hallucinations, so that's alright.
I do think if the bill is passed, it will be known to all in the space.

People and govs try to catch up to the game of hodling, and that's.. I think it's great, though every and each one would do it differently still.
For better, or worse, but that's a fact.
I hope it to be beneficial for these countries and BTC itself.