Brazil’s Congress Eyes BTC to Diversify National Reserves

Brazil's Congress is evaluating a proposal to create a Sovereign Strategic Bitcoin Reserve (RESBit). The initiative aims to protect the country’s economy from currency fluctuations and geopolitical risks. Congressman Eros Biondini introduced the legislation on November 25.

The proposal seeks to diversify Brazil's $355 billion national reserves. Currently, such reserves are mainly anchored on fiat currencies such as the US dollar. Bitcoin, under the plan, would be a part of the country’s reserves amounting to five percent at most. The acquisitions would be made in phases in an effort to reduce some of the risks.

The central bank would manage the Bitcoin assets using blockchain and artificial intelligence technologies. A technical advisory committee of security experts would provide additional support. The reserve would also back Brazil’s upcoming central bank digital currency, the Real Digital (Drex).

The draft law cites El Salvador as a success story of Bitcoin adoption. El Salvador adopted Bitcoin as a legal tender earlier in 2021 and has acquired nearly 6,000 BTC. It holds $542 million worth of Bitcoins at the moment. This bill focuses on how Bitcoin contributed to the diversification of the El Salvador economy.

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