Brazilian lawmakers have introduced a bill in Congress to establish a Sovereign Strategic Bitcoin Reserve, known as RESBit, marking a potential shift in the country's approach to digital asset management.

Presented by Congressman Eros Biondini on November 25th, the proposal seeks to address currency volatility, reduce geopolitical risks, and provide collateral for Brazil’s planned central bank digital currency (CBDC), the Real Digital, or Drex. 

The reserve would integrate Bitcoin into Brazil’s $355 billion sovereign reserves, currently dominated by assets tied to major fiat currencies like the U.S. dollar.

The bill outlines plans to allocate up to 5% of the reserves to Bitcoin through phased acquisitions. 

The central bank would manage the assets using blockchain and artificial intelligence technologies, with oversight from a technical advisory committee of security experts.

El Salvador’s adoption of Bitcoin in 2021 is cited as an example in the bill. The Salvadoran government has used Bitcoin to diversify its economy and currently holds nearly 6,000 Bitcoin.

The proposal also includes measures for oversight and accountability, with penalties for mismanagement or violations, including administrative and criminal sanctions.

Now under review by the Speaker of Brazil’s House of Representatives, the legislation will move to committee discussions if approved.

This initiative aligns with Brazil's mid-2023 regulations, granting the central bank authority over virtual asset providers and leaving securities tokens under the SEC's jurisdiction.

The proposed Bitcoin reserve, if enacted, could diversify Brazil's asset management strategy, but it remains subject to further debate and evaluation.

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