Brazil's Proposed Bitcoin Reserve Bill Aims to Diversify National Treasury's Financial Assets

Filed on Monday, the legislation proposes the establishment of the Sovereign Strategic Bitcoin Reserve (RESBit), which is designed to diversify the financial assets of Brazil's National Treasury.

Brazilian federal deputy Eros Biondini introduced a bill on Monday to create a national Bitcoin reserve, in a move toward integrating crypto into the country’s financial framework.

Filed with the Chamber of Deputies, the legislation proposes the establishment of the Sovereign Strategic Bitcoin Reserve (RESBit), which aims to diversify the financial assets of Brazil’s National Treasury.

The bill is designed to protect Brazil’s reserves from exchange rate fluctuations and geopolitical risks, promote the adoption of blockchain technology across the public and private sectors, and provide a solid backing for issuing Drex, Brazil’s new digital currency.

According to Biondini, the creation of RESBit is a strategic measure that will reportedly position Brazil at the forefront of the digital economy. Speaking to a local media outlet, the deputy stated:

The approval of this project is essential to guarantee the country’s economic sovereignty and align Brazil with global innovation trends. This initiative is crucial to ensure the country’s economic sovereignty and align Brazil with global innovation trends.

The bill outlines a planned approach to acquiring cryptocurrencies, proposing a “gradual Bitcoin accumulation” limited to 5% of Brazil’s international reserves, with the management of these assets through cold wallets.

Furthermore, any spending from the reserve would have to comply with Brazil’s Fiscal Responsibility Law, which ensures fiscal discipline, the deputy said on Monday. The legislation mandates that all transactions must be reported semiannually to the National Congress for transparency and accountability.

The Central Bank of Brazil (BC) would reportedly be responsible for managing the Bitcoin reserve in collaboration with the Ministry of Finance. The BC would also be tasked with developing monitoring and control systems using artificial intelligence and blockchain technologies for “operational integrity.”

The bill also includes provisions to educate the public about crypto assets. Biondini highlighted the growing significance of cryptocurrencies, noting that their global market value has crossed the $3 trillion mark in recent weeks.

Despite the volatility of cryptocurrencies, they are increasingly being recognized as a legitimate asset class, the deputy said, adding that countries that adopt effective strategies for economic integration with cryptocurrencies will likely reap significant benefits in the medium to long term.

At the time of writing, BTC is trading at $92,620, having seen a 7% correction in the past four days after almost reaching the $100,000 mark at the end of the week. However, the leading crypto is up 37% every month in longer time frames.