Brazilian congressman Eros Biondini has introduced a bill proposing the establishment of a national strategic Bitcoin reserve, known as Reserva Estratégica Soberana de Bitcoins (RESBit).

The initiative suggests converting up to 5% of Brazil’s international reserves, which stood at $372 billion as of September 2024, into Bitcoin.

The reserve, according to its proponents, would help safeguard the national treasury from currency fluctuations and geopolitical risks. Additionally, it would support the issuance of Brazil’s central bank digital currency (CBDC), Drex.

Key Provisions of the Bill

Management of the reserve would fall under the Central Bank of Brazil and the Brazilian Ministry of Finance. These institutions would also develop a monitoring system using blockchain and artificial intelligence technologies.

Public officials involved in managing the reserve would receive specialized training focused on international best practices. Biannual reporting to Congress would be mandatory, with administrative and criminal penalties for violations.

Expert Analysis

Analysts at Presto Research noted similarities between Brazil’s proposal and the Bitcoin Act 2024 introduced by U.S. Senator Cynthia Lummis.

“The race among nations for Bitcoin has already begun. Brazil is unlikely to be the last country to pursue this path,” the analysts said.

Context

The bill is currently under review by the Speaker of Brazil’s House of Representatives. In 2022, the Brazilian government announced plans to issue a CBDC and recognized Bitcoin as a legal payment method. Around the same time, one of the country’s oldest banks enabled tax payments in cryptocurrency.

In June 2023, Brazilian President Luiz Inácio Lula da Silva signed a law granting the central bank oversight of digital asset service providers. Cryptocurrencies classified as securities remained under the jurisdiction of CVM, the country’s securities regulator.