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.

I agree, that the boards and the opinions should be heard first, and I do think that it's too early to celebrate, though the news themselves are positive and optimistic.
Surely - I hope to see such developments in other countries too.

Big news in a nation in policy change will be celebrated by local citizens first. This one is only a bill and whether it will be approved, belongs to future. However, locals have more reasons to feel exciting with this new and this proposal bill than we as people from other countries.

They as locals, understand more about their government, law and things are going on than outsiders like us. I agree with you that we will need to wait for opinions from locals in Brazil, and perhaps @bitmover will join this discussion with his opinion and more information for us.

I just scanned some on reddit, but it's just the usual comments and maybe Brazilians are not aware of this news?

Perhaps we need to hear from the our Brazilian community here as to what their take here or what it seems that there is not much of a news about this as this could really be very big in their country.

Nevertheless, I will have to agree that somewhat Donald Trump have influenced several pro-Bitcoin politicians around the world that's why there are bills around to make Bitcoin as a strategic reserves.

The law maker who proposed the bill is in the opposition. I just hope he will be able to gain the support of other legislatures to get the bill passed into law. The influence of Trump is already at work, countries have begun to copy his policies even before he is sworn in as president.

It is indeed a shift from the norm of keeping seized Bitcoin. The government is waking up to the fact that the Bitcoin national race has begun and they don't want it be left behind. The market is not restrictive, there are no avenues to stop the government from acquiring as much Bitcoin as they can. So we have to accept the fact that a large amount of Bitcoin will end up in the custody of centralized bodies.

Interesting. I looked a bit into it. The politician who introduced the law project is Eros Biondini, his bio with some info is here: https://www.camara.leg.br/deputados/160640 . There is also a Wikipedia site about him.

He's part of the Partido Liberal (PL), which is currently in opposition to the government, but on the other hand it's the currently biggest bloc in the Lower House. This makes it probably unlikely for this law to be approved, but also not totally irrelevant.

The PL was one of the parties who supported the former president Jair Bolsonaro, who is aligned internationally with Trump. It is thus likely that they want to capitalize locally from Trump's promise of a strategic reserve.

Seeing the distribution of parties in the Chamber of Deputies, if they could unite all opposition parties and independents behind the project, then the law would be approved, as the center-left government coalition has no absolute majority and thus can't block it.

I was also interested if the Brazilian mainstream media took note of the project. There seem to be few articles but at least I found this one (not very detailed, my Portuguese is not very good though).

I have been looking in the different news to see if it said anything about deadlines, once the bill has been introduced, how long it would take to be approved (if it is finally approved) and how long it would take to come into force but I can't find anything. I have asked ChatGPT and he doesn't tell me anything either, he says it is variable. I was just curious to see if they could get ahead of the assumption that Trump in January could with an executive order to start buying bitcoin.

It seems centralized governments are going to be holding a lot of BTC in their reserves, this time not coins they confiscated, but coins that they bought to store in their reserves, just as most of them have gold reserves. There is a sentiment among some bitcoiners that this might not really be as good as we think, if they hold so much coins, it could be that they can manipulate the price of BTC if they want. I don't know if it is enough to be worried, but we'll see what happens if the U.S. and other countries create a strategic BTC reserve.

seems like strategic bitcoin reserve is imminent for countries around the world and if it did happen around the world I can imagine bitcoin's stance as being hailed for being a hedge against inflation and store of value getting stronger, I think it is even possible that once every countries following the hype of creating strategic bitcoin reserve, we won't be seeing any cyclical bitcoin bearish season but instead it's just full bullish from here on.

Yeah, possible that this is the Trump 2.0 effect, every country is not wanting to make Bitcoin as a strategic reserve. I mean it's a win-win so why not do it today? still not late even though we are aiming for a $100k price in this bull run.

This is government though, they can simply put some money on them without thinking and then go on the next 4 years and see how it goes. Microstrategy has proven a point already, that buying and having a Bitcoin reserved is good as it can make a huge profits in Billions of dollar. So it's very effective method so why not do it by Brazil and other poor countries as well?

I wouldn't be any excitement about this. This is what we are reading. You can even go wrong with having a strategic Bitcoin Reserve. These are the things that will increase more adoption of Bitcoin worldwide.
Poor countries know the right thing to do to improve their economy but they are too scared of change because of the fear of the unknown. Besides the growing adoption, the increase in price that comes with. It is a win situation for them.

I will say it's already news since it has been proposed already. The only difference will be that when it's passed ruling and the majority votes in its favour, then we will talk about it being good news and not just any old news. 
 
We, it's good to see countries making such bold steps; Trump has opened ways for them, and once one finally starts the accumulation process for the reserve, which I believe will happen anytime soon, then more of this kind of proposal will keep on popping up.

Possibly, they're trying to do it even before Trump gets into office so, they're following the trend. I think that this is one of the best things in the world nowadays. We'd see country after country trying to make a law for their nation like this bitcoin reserve. Countries that will have it won't just have a gold reserve but also will have a bitcoin reserve. Are we going to see the race for who's going to accumulate the most of it? maybe we're already on that era and narrative and that's why the price will shoot not just for this bull run but this will be continuous.

I don't know yet but aside from that, some might just declare bitcoin is legal to them and up to the point that they will make it as a legal tender.

Seems Brazilian government think something great for doing this since before US could make a first move for making bitcoin as their global reserve they take action first. I guess this is another good development in the scene and provably once this countries will successfully made this action to happen more countries will also follow what they do.

Can't imagine on where we are heading in terms of price turn out of more demands coming and lucky for those people who decide to hold since provably that they would earn more if more situation like this will be implemented.

Looking for more good development to come in future.

The action of El Salvador made people from other parts of the world curious to their country. And yes, some people made a visit and have a tour in their country. And if the US will be more vocal in terms of supporting this technology owed to the new SEC Chair, I highly believe that people will talk and will possibly change their stance over the crypto market.

I believe countries are now seeing the advantages Bitcoin offers them and they will benefit more adopting Bitcoin than trying to be against it. I see some people giving Donald Trump credit for this, even though I believe US is a world power and has influence on other countries decisions, I would still recognise Salvador's contribution in all of this and I think other countries are seeing how the impact of their decision is favouring them.

So I think Brazilians should just keep their fingers crossed and hope this bill is accepted and passed to law but I am very sure this would benefit them as a nation.

Hopefully they do it because it looks like this is only a project that needs to pass through parliament and then be signed by the president.

It's only a matter of time before more countries try the same thing, especially after El Salvador did it and it did not destroy its economy. On the contrary, it made the country hit the news more often. It made people visit, lead bitcoiners to invest there with Max Keiser being one of the first to do it.

It's going to be an interesting year for Bitcoin.

This is a first step to more better achievements concerning bitcoin in Brazil, i was like waiting to hear the news of the next country to adopt bitcoin as a legal tender, maybe this is what most of the aspiration could be regarding any breaking news about bitcoin, this end of the year could mark the fervent transcend of bitcoin most ever recognition, because this year itself has been a season for bitcoin following the series of events and activities that happened and with the hope for more to come, once again, congratulation to Brazil over this achievement and more to come.

Yes, Donald Trump’s move to make bitcoin a national reserve will attract a lot of countries to follow in its footsteps. The US government is a very strong one and a nation that has a more pivotal control and decision on bitcoin adoption all around the globe. It baffles me before, but now I’m no longer worried to see countries following in the footsteps of US.


This is great news and it’ll even become a more greater news of all this are passed into law and actively working. More countries will follow in their footsteps and that will bring some sigh of hope to the bitcoin community. For sure, these are the types of news we always love to hear about bitcoin.

Yes it needs to be passed I believe. If’s not really news unless it gets signed into law by the President. I hope it will pass but I never get excited about tgis type of news until it is signed, sealed & delivered.

Now it's needed for it to be passed, right?
More analysis is needed for this news, however, in any case - it's great to see such a development.
Cudos to Brazil 

https://www.camara.leg.br/proposicoesWeb/prop_mostrarintegra?codteor=2825474&filename=PL%204501/2024

Is this the result of Trump wanting Bitcoin to be a National reserve? And now there are more countries replicating his stance like Brazil?

And as there any more countries going to follow what US has set? For sure as Bitcoin enthusiast, we love to see this kind of news and we all know that we have a lot of Brazilians too in this community.