Brazilian Lawmaker Proposes National Bitcoin Reserve

Brazilian congressman Eros Biondini has introduced a bill aiming to establish a national strategic bitcoin reserve, known as the Reserva Estratégica Soberana de Bitcoins (RESBit).

The proposal suggests converting up to 5% of the country’s international reserves into the leading cryptocurrency. These reserves reached $372 billion as of September 2024.

The authors believe such a reserve would protect the treasury from currency fluctuations and geopolitical risks. Another function would be to support the issuance of Brazil’s CBDC, Drex.

The bill’s creators propose that the reserve be managed by Brazil’s central bank and the Ministry of Finance. They would also be tasked with developing a “system of monitoring and control using artificial intelligence and blockchain technologies.”

In light of these new responsibilities, government officials will be offered training courses “with a focus on international experience.” Managers will be required to report to Congress on their activities every six months, and Biondini’s proposal includes administrative and criminal penalties for rule violations.

According to analysts at Presto Research, the Brazilian bitcoin reserve will resemble the project by U.S. Senator Cynthia Lummis, the Bitcoin Act 2024.

“The race among nations for bitcoins has already begun. […] Brazil is unlikely to be the last country to move in this direction,” stated Presto analysts.

At the time of writing, the bill is under review by the Speaker of the Brazilian House of Representatives.

In 2022, the country’s government revealed plans to issue a CBDC and recognized bitcoin as legal tender. Within months, one of Brazil’s oldest banks allowed taxes to be paid in cryptocurrency.

In June 2023, President Luiz Inácio Lula da Silva signed a law granting the central bank authority to oversee digital asset service providers. Cryptocurrencies classified as securities remain under the jurisdiction of Brazil’s securities regulator, CVM.

In November 2024, a bill to create a national bitcoin reserve was put to a vote in the U.S. Congress.