Brazil proposes Bitcoin Reserve to strengthen financial resilience

Brazil’s Congress is considering a bill to establish a Sovereign Strategic Bitcoin Reserve, known as RESBit, to enhance asset diversification and protect the country from global economic and geopolitical risks.

Introduced on November 25 by Congressman Eros Biondini, the legislation aims to incorporate Bitcoin (CRYPTO:BTC) into the nation's financial system.

The proposed reserve would allow the central bank to manage Bitcoin holdings alongside existing assets, capping BTC reserves at 5% of the total.

Brazil's $355 billion in reserves, primarily tied to fiat currencies such as the US dollar, would be complemented by phased Bitcoin purchases.

The reserve would operate on public systems utilising blockchain and artificial intelligence, supported by a technical advisory committee of security experts.

The bill cites El Salvador's adoption of Bitcoin as legal tender in 2021 as a model for economic diversification.

El Salvador currently holds nearly 6,000 BTC, valued at $542 million as of November 26.

The Brazilian draft law highlights Bitcoin’s potential as collateral for the country’s upcoming central bank digital currency, the Real Digital (Drex).

Provisions in the legislation include penalties for mismanagement or noncompliance with RESBit regulations, with violators facing administrative or criminal sanctions.

The proposal is now under review by the Speaker of Brazil’s House of Representatives and will move to committees for debate upon approval.

At the time of reporting, the Bitcoin (BTC) price was $92,904.94.