On Nov. 25, Congressman Eros Biondini introduced a bill to create the Sovereign Strategic Bitcoin Reserve, or RESBit. This reserve aims to protect Brazil’s sovereign assets from currency volatility and geopolitical risks. It could also serve as collateral for the country’s upcoming central bank digital currency (CBDC), the Real Digital (Drex).
Brazil’s sovereign reserves, currently valued at US$355 billion, are largely tied to fiat currencies like the US dollar. Under the proposed law, Bitcoin could complement these assets, with phased purchases capping BTC’s share at 5% of total reserves. Blockchain and AI technologies would power public management systems for these assets, supported by a technical advisory committee of security experts.
The legislation highlights El Salvador’s pioneering adoption of Bitcoin as legal tender in 2021 as a case study. Since then, El Salvador has accumulated nearly 6,000 BTC, valued at US$542 million, leveraging the cryptocurrency to diversify its economy and attract foreign investment.
The bill outlines strict penalties for mismanagement or noncompliance, including administrative and criminal sanctions. It’s now under review by the Speaker of Brazil’s House of Representatives and, if approved, will move to committee discussions.
This proposal follows Brazil’s ongoing efforts to regulate digital assets. In June 2023, the country enacted a legal framework granting the central bank authority over virtual asset service providers, while securities tokens remain under the purview of the Securities and Exchange Commission.
If passed, the RESBit initiative could position Brazil as a regional leader in integrating digital assets into sovereign financial strategies.
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