Brazil’s Economic Development Committee has approved a landmark bill proposing the inclusion of Bitcoin in the country’s sovereign reserves. The legislation, known as PL 4501/2024, aims to create a Sovereign Strategic Bitcoin Reserve (RESBit) managed jointly by the Central Bank of Brazil and the Ministry of Finance. Under this bill, up to 5% of Brazil’s foreign exchange reserves could be allocated to Bitcoin, marking a significant step toward integrating the cryptocurrency at an official government level.
The bill stipulates stringent security and oversight measures including the use of cold-storage wallets for Bitcoin custody and biannual independent audits. Additionally, artificial intelligence systems will be deployed to continuously monitor Bitcoin holdings for any irregularities or anomalies, ensuring high transparency and regulatory compliance.
Proponents argue that diversifying Brazil’s reserves with Bitcoin could reduce exposure to fiat currency risks and geopolitical shocks, while also providing a hedge against inflation. This move aligns Brazil with a small group of countries, such as El Salvador, that are exploring decentralized digital reserve assets.
The bill now faces further scrutiny in additional congressional committees covering technology, constitutionality, and finance before proceeding to full legislative votes and presidential ratification. If enacted, Brazil would become a pioneer among major economies in officially integrating Bitcoin as part of its national financial reserves, potentially setting a precedent for others to follow.