New bill suggests Bitcoin reserve for Brazil
The proposal involves allocating up to 5% of Brazil’s $355 billion reserves to Bitcoin, with central bank management utilising blockchain and AI technologies.
Brazil has unveiled a proposal to create a sovereign Bitcoin reserve, aiming to integrate digital assets into its financial system. Congressman Eros Biondini introduced the bill on 25 November, calling for a Sovereign Strategic Bitcoin Reserve, known as RESBit, to safeguard the country’s economy from currency volatility and geopolitical risks. The reserve would also serve as collateral for Brazil’s forthcoming central bank digital currency, Real Digital.
The proposal suggests allocating up to 5% of Brazil’s $355 billion reserves to Bitcoin through phased purchases, with the central bank overseeing its management using blockchain and artificial intelligence technologies. Drawing inspiration from El Salvador, which adopted Bitcoin as legal tender in 2021, the bill highlights how Bitcoin has helped diversify economies and foster financial inclusion. El Salvador now holds nearly 6,000 BTC, valued at $542 million.
The draft law includes penalties for mismanagement of the RESBit reserve and is currently under review by the Speaker of Brazil’s House of Representatives. If approved, it will proceed to committees for further debate. Brazil continues to advance its digital asset policies, having established a legal framework in June 2023 to regulate virtual asset providers and securities tokens under its central bank and securities commission.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.