Brazil's Vice President's Senior Advisor Urges the Nation to Establish a Sovereign Bitcoin Reserve

He argued that Bitcoin serves the public interest and is vital for economic prosperity. Comparing Bitcoin to “digital gold,” he highlighted its role as a secure store of value

A senior advisor to Brazil’s Vice President has urged the nation to establish a sovereign Bitcoin (BTC) reserve. The advisor, Pedro Giocondo Guerra, stated that a bitcoin strategic reserve is in the public interest and will be decisive for the country’s prosperity.

“A sovereign reserve of Bitcoin is in the public interest and will be decisive for our prosperity. After all, Bitcoin is digital gold, the gold of the internet,” the official wrote on X, on Monday, August 28.

Brazil, the world’s 10th-largest economy, with a GDP of $2.2 trillion, is increasingly engaging in digital assets. Recently, there have been plans to create a U.S. Bitcoin stockpile, which were announced by former President Donald Trump.

These plans are being considered by nations, especially after America’s involvement in the crypto market. Countless officials and members of congress have voiced their support for new policies and are actively seen to be pushing for more adoption of BTC in government systems.

Highlighting the role of bitcoin as “digital gold,” Guerra noted its significance as a store of value in the digital age.

His comments come amid a broader discussion in Brazil about the potential for the country to invest in bitcoin as part of its sovereign wealth fund.

Earlier this year, a bill that allows the national treasury to set aside 5% of its $18.3 billion international reserves towards BTC purchases was proposed by congressman Eros Biondini.

Biondini’s legislation, also known as Law 14.880/23, aims to integrate blockchain technology with AI solutions and strong cybersecurity measures, like multi-sig cold wallets, for optimal BTC custody.

The bill is now being examined by Rapporteur Luiz Gastão in the Lower House Economic Development committee. It envisions periodic purchases of BTC while setting up a system of transparency with public reports every six months and the formation of a technical advisory committee for blockchain and IT specialists.

The proposal cites the reasons for such integration, mentioning El Salvador’s full adoption of Bitcoin, the issuing of Bitcoin ETFs in the U.S., and China’s investments in blockchain. Supporters claim that RESBit would improve Brazil’s economic stability while decreasing geopolitical risks and making Brazil a digital economy and innovative finance leader.