Brazil eyes Bitcoin reserve as El Salvador powers mining

Brazil’s Strategic Bitcoin Reserve Bill proposes allocating up to 5% of the nation’s international reserves to Bitcoin (CRYPTO:BTC) as part of a strategy to mitigate currency volatility and geopolitical risks.

Authored by Federal Deputy Eros Biondini, the bill seeks to position Brazil as a leader in blockchain innovation while fostering the use of Bitcoin across public and private sectors.

The Central Bank of Brazil, in collaboration with the Ministry of Finance, would manage the reserve, providing semiannual reports on acquisitions, performance, and risks to ensure transparency.

El Salvador’s President Nayib Bukele teased a “rent-a-volcano” program that would allow third parties to use the country’s geothermal energy for green Bitcoin mining.

Responding to praise for El Salvador’s use of geothermal power in Bitcoin mining, Bukele suggested that renting volcano energy could make economic and environmental sense.

This initiative could position El Salvador as a pioneer in providing renewable energy solutions to global Bitcoin miners, leveraging its natural resources for economic growth.

Vaneck, a U.S.-based investment giant, has praised Bukele’s administration for its Bitcoin adoption strategy, calling El Salvador “Latin America’s ultimate comeback story.”

The report highlights improvements in the quality of life and personal security for Salvadorans under Bukele’s leadership.

Despite only 8% of Salvadorans using Bitcoin for payments, Vaneck views Bitcoin’s integration as a foundation for broader adoption and innovation in financial technology.

Vaneck also recognised El Salvador’s Bitcoin-related initiatives, including its reserves, the planned Bitcoin City, and Volcano Bonds, as strategic moves to solidify its position in the cryptocurrency landscape.

These developments illustrate Latin America’s increasing integration of Bitcoin into national strategies, with Brazil and El Salvador taking bold steps to capitalise on cryptocurrency’s potential for economic and technological transformation.

At the time of reporting, Bitcoin price was $97,443.69.