Brazil’s Congress is proposing a groundbreaking bill that might change the country’s approach to digital assets. The proposed legislation, introduced on November 25 by Congressman Eros Biondini, seeks to create a Sovereign Strategic Bitcoin Reserve, known as RESBit. This reserve would allow Brazil to invest up to 5% of its international reserves in Bitcoin, serving as a hedge against global economic risks, currency volatility, and geopolitical uncertainty.
The country’s current reserves, primarily composed of global fiat currencies such as the US dollar, would receive a boost from the new Bitcoin reserve. Brazil hopes to increase asset diversification and economic resilience by incorporating Bitcoin into its financial portfolio. The country’s central bank would manage the reserve, under the supervision of a technical advisory group consisting of blockchain and cybersecurity specialists. Cold wallets would securely house the reserve’s assets, and the central bank would report on their management semiannually to ensure transparency and accountability.
In addition to acting as a hedge against economic instability, the reserve would also serve as collateral for Brazilâ€TMs forthcoming central bank digital currency (CBDC), Drex. The measure emphasizes the role of Bitcoin in increasing financial diversification, citing El Salvador’s acceptance of it as an example. El Salvador’s Bitcoin strategy has helped the government attract foreign investment and increase financial inclusion, and Brazil aspires to repeat its success.
If approved, the RESBit initiative would position Brazil as a leader in embracing digital assets within the global financial system. The Speaker of Brazil’s House of Representatives is currently reviewing the bill, and it will undergo debate in the relevant committees before potential enactment. The move reflects the increasing global trend of integrating Bitcoin into national financial systems, signaling the growing acceptance of cryptocurrencies as legitimate financial assets.
