A new bill proposed in the Brazilian Congress could change the country's approach to digital assets by establishing a federal Bitcoin reserve fund. The bill, introduced on November 25 by Congressman Eros Biondini, aims to create a strategic Bitcoin reserve fund, referred to as RESBit.
The goal of the bill is to establish a national reserve fund with Bitcoin to protect the Brazilian economy from currency volatility and geopolitical risks. Additionally, Bitcoin will also serve as collateral for the upcoming central bank digital currency of Brazil, Real Digital (Drex).
The national reserve fund is a collection of assets held by the central bank, aimed at stabilizing the national currency, supporting the economy, and facilitating international trade. As of December 2023, Brazil holds approximately $355 billion in reserves, mainly in assets linked to global fiat currencies such as the US dollar.
According to the new bill, Bitcoin will contribute a maximum of 5% to the national reserves, equivalent to $18.6 billion, through phased purchases. The Central Bank of Brazil will continue to manage these assets through public systems supported by blockchain technology and artificial intelligence (AI). A technical advisory committee, including security experts, will assist in this management process.
Brazil's RESBit bill also cites El Salvador's experience as an example of progress in the use of Bitcoin. In 2021, El Salvador became the first country to legalize Bitcoin as an official currency alongside the US dollar, aiming to promote financial inclusion and attract international investment. Since then, the El Salvador government has actively invested in Bitcoin, currently holding nearly 6,000 BTC worth approximately $542 million as of November 26.
The Brazilian bill states that over the past four years, Bitcoin has helped El Salvador diversify its economy while creating a stable financial reserve.
In addition, the bill proposes strict measures to deal with violations of regulations related to the management of the RESBit Fund, including administrative or criminal penalties for cases of non-compliance or poor management.
The bill is currently being reviewed by the President of the Brazilian House of Representatives and will be forwarded to committees for discussion and approval. This move comes amid Brazil's strong steps in establishing a legal framework for digital assets. In June 2023, the country launched a new regulatory system, empowering the central bank to oversee and manage virtual asset service providers. At the same time, qualified tokens will continue to be under the supervision of the Brazilian Securities and Exchange Commission.