Brazil Moves Closer to Bitcoin Reserve with 5% Allocation Bill

Generated by AI AgentCoin World
Thursday, Jun 12, 2025 9:53 am ET1min read
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Brazil’s strategic Bitcoin Reserve Bill 4501/2023 has successfully passed its first committee, marking a significant step towards the country’s potential adoption of Bitcoin as part of its national reserve. The bill, introduced by Brazilian Federal Deputy Eros Biondini, proposes the creation of a national reserve termed “RESBiT,” which would allow up to 5% of Brazil’s foreign exchange reserves to be allocated to Bitcoin. This move, if fully implemented, would position Brazil as the second Latin American country, after

El
Salvador, to legally establish a Bitcoin reserve.

The bill mandates stringent security protocols, including the use of cold wallets for storage and biannual audits to ensure transparency. The Central Bank of Brazil and the Ministry of Finance will oversee the management of these reserves, with audited reports to be submitted to Congress every six months. This structured approach aims to balance the potential benefits and risks associated with adding Bitcoin to Brazil’s official reserves.

Luis Gastao, the rapporteur of the proposal and a Brazilian Congressman, emphasized the importance of a cautious and gradual implementation strategy. He noted that adopting this Bitcoin Reserve plan could help reduce Brazil’s reliance on fiat currency and diversify its assets. The bill also aims to support the development of a central bank digital currency, further diversifying the Treasury’s assets.

The bill is now seeking approval from the committee on technology, constitution, and finance for further consideration. If passed, Brazil’s initiative for a Sovereign Bitcoin Reserve could set a precedent for other nations, potentially influencing their tech policies and approaches to digital assets.

Cryptocurrencies like Bitcoin are already legal in Brazil, regulated by the Brazilian Virtual Assets Law, which ensures transparency and consumer protection. The Central Bank of Brazil and the Securities and Exchange Commission oversee the financial aspects and licensing of virtual assets, adhering to FATF standards.