Brazilian Congress Considers Introducing a ”Bitcoin Reserve”

Brazil is pushing ahead with the creation of a federal Bitcoin reserve through the introduction of a new bill. A new bill was introduced in the Brazilian Congress on the 26th (local time) that would create a federal-level Bitcoin reserve.
The bill proposes the creation of a Bitcoin reserve, signaling a possible shift in the country's approach to digital assets. The bill was introduced on Jan. 25 by Eros Biondini, the country's top adviser.
The bill, introduced by Rep. Biondini, seeks to establish a Sovereign Strategic Bitcoin Reserve, known as RESBit.
According to the bill, the Bitcoin reserve would be a sovereign reserve in Brazil to protect against the volatility of the currency.
The move will help protect against global and geopolitical risks, while also supporting the upcoming central bank digital currency (CBDC), Real Digital.
Sovereign reserves are pools of assets held by a nation's central bank that typically back a nation's fiat currency and are used to secure its economy.
It will be used to stabilize the economy and support international trade. As of December 2023, Brazil has approximately $355 billion in reserves, mostly in assets linked to global fiat currencies such as the US dollar.
According to the bill, the Bitcoin reserve would be built by gradually purchasing up to 5% of the country's total reserve to complement existing financial assets.
It will still be managed by the central bank and run through a public system using blockchain and artificial intelligence technology, and will be supported by a technical advisory committee made up of security experts.
The bill cites El Salvador, which adopted Bitcoin as legal tender, as an example of progress, stating that Bitcoin has helped diversify the country's economy over the past four years.
It has been evaluated that this was the case.