Brazil begins to discuss a new law that would pave the way for the creation of a Strategic Bitcoin Reserve, under the name RESBit.
Brazilian MP Eros Biondini has presented a bill (Proposal 2471228) that seeks to create a Sovereign Strategic Reserve of Bitcoin (RESBit) in Brazil. This initiative, which marks a milestone in the adoption of cryptocurrencies by a national government, aims to diversify the financial assets of the National Treasury, protect international reserves against exchange rate fluctuations and geopolitical risks, and encourage the use of blockchain applications in both the public and private sectors.
In this way, RESBit would become a strategic tool to improve Brazil's economic resilience, reducing dependence on fiat currencies and opening up new opportunities for technological and financial development. Biondini has emphasized that the approval of this project is crucial to guarantee the country's economic sovereignty and align itself with global innovation trends.
RESBit Objectives and Strategy
The bill proposes a planned and gradual acquisition of Bitcoin, which would constitute up to 5% of Brazil's international reserves. This figure, although modest, represents a significant step towards integrating cryptocurrencies into the country's asset management. The Central Bank of Brazil and the Ministry of Finance would be the entities responsible for acquiring and managing RESBit, ensuring rigorous and transparent control.
The management of RESBit will include the implementation of advanced monitoring and control systems, as well as the creation of a robust infrastructure to safeguard digital currencies against cyber risks, fraud and unauthorized access. In addition, the formation of a technical advisory committee composed of digital security experts is planned, whose role will be to advise on decisions related to the BTC reserve.
Economic and financial impact
The creation of RESBit has the potential to have a significant impact on the Brazilian economy. By diversifying the assets of the National Treasury, Brazil could reduce its exposure to exchange rate fluctuations and the geopolitical risks associated with fiat currencies. This could improve the country’s financial stability and increase its attractiveness to international investors.
In addition, RESBit could serve as a backing for the issuance of the Brazilian digital currency, known as Real Digital or DrexThis digital currency, which is under development, seeks to modernize the country's financial system and facilitate faster and safer transactions. The integration of Bitcoin into national reserves could strengthen confidence in the Digital Real, which in turn could accelerate its adoption and use.
Learning from international examples
Brazil’s proposal draws inspiration from international models, particularly the case of El Salvador, which adopted Bitcoin as legal tender in 2021. El Salvador has acquired over 6.000 BTC, generating a value of over $542 million as of November 2023. This example has demonstrated how Bitcoin adoption can provide economic diversification and attract foreign investment.
Other countries are also exploring cryptocurrency adoption. The United States, for example, has announced plans to establish a national Bitcoin reserve by 2025. Argentina, under the administration of Javier Milei, and Morocco are preparing regulatory environments for digital assets. In Suriname, candidate Maya Parbhoe is campaigning to make Bitcoin legal tender, following the example of El Salvador.
The bill also includes control and oversight measures to ensure responsible management of RESBit. Administrative and criminal sanctions are established in the event of non-compliance or mismanagement, reflecting the Brazilian government's commitment to the integrity of the project. It also provides for the promotion of education and technological innovation, with the aim of preparing the population and the business sector for the digital age.
Brazil’s Central Bank has already taken steps to regulate virtual asset service providers, demonstrating a proactive approach to integrating emerging technologies. These actions are part of a broader legal framework that seeks to balance innovation with the protection of investor interests and financial stability.
Future implications for Brazil
The successful implementation of RESBit could mark a turning point in Brazil’s economic strategy, positioning it as a leader in cryptocurrency adoption among emerging markets. The synergy between traditional economic mechanisms and innovative digital asset strategies could open up new opportunities for financial inclusion and increase investor confidence.
However, cryptocurrency adoption is still in its early stages, and proposals like RESBit may face political and regulatory resistance. The European Central Bank, for example, has expressed opposition to widespread cryptocurrency adoption, suggesting that the road to Bitcoin being integrated into national reserves will not be without obstacles.
