Brazil's Congress is considering a new bill that aims to establish a sovereign federal Bitcoin Reserve, known as RESBit, proposed by Congressman Eros Biondini. This initiative is intended to diversify the nation's economic assets and enhance its resilience to global risks, particularly currency fluctuations and geopolitical challenges. The draft legislation allows for Bitcoin to comprise up to 5% of the country's reserves, which were valued at $355 billion in December 2023 and predominantly backed by fiat currencies like the US dollar. The Bitcoin reserve would serve as collateral for Brazil's central bank digital currency, Real Digital (Drex). The bill draws inspiration from El Salvador's adoption of Bitcoin as legal tender in 2021, which allegedly helped diversify its economy. The legislation includes penalties for mismanagement of the RESBit, underlining the importance of compliance. Currently under review, the bill will be debated in committees if approved by the Speaker of the House. This move aligns with Brazil's ongoing efforts to regulate digital assets and establish a framework for their integration into the financial system.

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