cryptojournalist
Brazil’s Congress is thinking about creating a federal Bitcoin Reserve to make the economy more secure and less dependent on traditional currencies.
Congressman Eros Biondini introduced the bill on Nov. 25, proposing a Sovereign Strategic Bitcoin Reserve (RESBit). The idea is to protect Brazil from economic risks like currency instability and to help back its planned digital currency, Real Digital (Drex).
Brazil has $355 billion in reserves, mostly in fiat currencies like the U.S. dollar. The bill suggests using up to 5% of these funds to buy Bitcoin in phases. The central bank would oversee it using blockchain and AI, with advice from security experts.
The plan takes inspiration from El Salvador, which made Bitcoin legal tender in 2021. El Salvador now owns 6,000 BTC, worth $542 million, and has reportedly strengthened its economy with this move.
The proposal also warns against mismanagement of the reserve, with penalties like fines or criminal charges. It’s currently under review and will be debated in committees soon.
