Bitcoin strategic reserve bill introduced in Brazil’s Congress

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Crypto Federal deputy proposes the Sovereign Strategic Reserve of Bitcoins to hold up to 5% of Brazil’s international reserves.

A Brazilian federal deputy introduced legislation to create a national Bitcoin reserve that would hold up to 5% of the country’s international reserves.

The proposal aims to diversify the Treasury’s assets and support the country’s central bank digital currency (CBDC).

The bill, filed on November 25 by Federal Deputy Eros Biondini, proposes establishing the Sovereign Strategic Reserve of Bitcoins (RESBit).

It would be managed by Brazil’s Central Bank in partnership with the Ministry of Finance, utilizing cold wallets for security.

“The formation of RESBit is a strategic measure that positions Brazil at the forefront of the new digital economy, reducing economic risks and expanding opportunities for technological and financial development,” Biondini wrote in the bill’s justification.

The proposed reserve would back the issuance of Drex, Brazil’s CBDC, and include advanced monitoring systems using artificial intelligence and blockchain technology to ensure transaction integrity.

Management would follow Brazil’s Fiscal Responsibility Law, with semiannual reports to the National Congress.

“The cryptocurrency market has shown consistent expansion. In 2021, the total global cryptocurrency market surpassed $3 trillion, according to CoinGecko. Although volatile, cryptocurrencies are consolidating as a legitimate asset class,” Biondini stated in the bill.

The legislation also includes provisions for educational programs to inform the public about digital assets, with implementation planned through a gradual and controlled acquisition process.