Brazil Considers Establishing National Bitcoin Reserve

According to PANews, a legislative proposal known as Bill PL 4501/2023, introduced by Brazilian Federal Deputy Eros Biondini, has received favorable feedback from the Economic Development Committee of the country's Chamber of Deputies. The bill suggests the creation of a national Bitcoin reserve, termed 'RESBit,' allowing up to 5% of Brazil's foreign exchange reserves to be allocated in Bitcoin. Luis Gastão, the rapporteur for the proposal, highlighted that a Bitcoin reserve could aid Brazil in diversifying its assets and reducing reliance on fiat currency. The plan outlines that the Brazilian Central Bank and the Ministry of Finance would manage the reserves using stringent security protocols, such as cold wallets, and submit audited transparency reports to Congress every six months. The bill still requires approval from the committees on technology, constitution, and finance. If ultimately passed, Brazil could become the second country after El Salvador to legally establish a Bitcoin reserve.