The Brazilian Congress is considering a bill to establish the Bitcoin Strategic Reserve Fund (RESBit), with a maximum rate of 5% of the total national reserves, currently at $355 billion.
On November 25, Congressman Eros Biondini officially presented the bill to establish the Bitcoin Strategic Reserve Fund (RESBit) to the Brazilian Congress, marking a new step in the South American nation's approach to digital assets. If approved, Brazil could become one of the first major economies in the world to officially incorporate Bitcoin into its national reserves.
According to the draft content, the RESBit Fund will be managed by the Central Bank of Brazil through transparent systems applying blockchain technology and artificial intelligence. The operation of the fund will be supervised by a dedicated technical advisory committee on security. The draft emphasizes that RESBit will supplement the financial asset portfolio of the nation, with the goal of diversifying the current reserves which are primarily focused on assets linked to international fiat currencies such as the USD.
Source: Chamber of Deputies
The proposed plan uses a maximum of 5% of the total national reserves, equivalent to about $17.75 billion, to purchase Bitcoin in phases. This is expected not only to create an additional layer of financial protection but also to reflect Brazil's strategic shift in the context of digital assets being increasingly accepted worldwide.
A notable point in the bill is that Bitcoin could be used as collateral for the Digital Real (Drex) – the central bank digital currency (CBDC) that Brazil is developing. This demonstrates the seriousness of the Brazilian government in integrating Bitcoin into the national financial system, opening up the potential to reshape the relationship between traditional and digital assets.
The draft bill cites the case of El Salvador, the first country in the world to recognize Bitcoin as legal tender since 2021. It is assessed that Brazil views positively how El Salvador has used Bitcoin to diversify its economy over the past four years. Currently, El Salvador holds nearly 6,000 BTC, equivalent to $542 million (as of the value on November 26).
The draft also proposes strict regulations on administrative and criminal penalties for cases of violations or non-transparent management of the RESBit Fund. This shows the government's commitment to ensuring safety and transparency in the management of public assets.
Currently, the bill is under review by the President of the Brazilian House of Representatives before being forwarded to the relevant committees for detailed discussion. This move comes just a few months after Brazil approved a legal framework in June 2023, allowing the Central Bank to oversee virtual asset service providers, marking a shift in its approach to the blockchain industry.
