Brazil’s Bitcoin Reserve Bill 4501/2023 passed a critical committee vote on June 12, marking a significant step towards incorporating Bitcoin into the country’s national reserves. The bill allows for the allocation of up to 5% of Brazil’s foreign exchange reserves via a newly established reserve called RESBiT.
The bill mandates strict security protocols, including cold wallet storage and biannual audits, under the oversight of Brazil's Central Bank and the Ministry of Finance. The goal is to facilitate a gradual and cautious adoption of Bitcoin, as emphasized by Luis Gastão, the congressman responsible for the proposal, who noted that this initiative aims to diversify national assets and lessen reliance on fiat currencies.
Brazil's approach contrasts with that of El Salvador, the first country to adopt Bitcoin as legal tender, as it focuses on structured measures and government oversight. With Brazil seeking further approval from additional committees, this initiative could position the nation as a leader in cryptocurrency governance in Latin America.
If successful, Brazil could encourage other countries to consider similar models, promoting thoughtful strategies for integrating digital currencies into public finance.
The bill mandates strict security protocols, including cold wallet storage and biannual audits, under the oversight of Brazil's Central Bank and the Ministry of Finance. The goal is to facilitate a gradual and cautious adoption of Bitcoin, as emphasized by Luis Gastão, the congressman responsible for the proposal, who noted that this initiative aims to diversify national assets and lessen reliance on fiat currencies.
Brazil's approach contrasts with that of El Salvador, the first country to adopt Bitcoin as legal tender, as it focuses on structured measures and government oversight. With Brazil seeking further approval from additional committees, this initiative could position the nation as a leader in cryptocurrency governance in Latin America.
If successful, Brazil could encourage other countries to consider similar models, promoting thoughtful strategies for integrating digital currencies into public finance.
