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Even as Bitcoin (BTC) struggles with weak price performance and heightened volatility over the past month, Brazil’s House of Representatives is signaling a markedly different long‑term outlook. Lawmakers are once again exploring the creation of a national Bitcoin reserve that could eventually hold as many as 1 million BTC.
The renewed push comes through Bill No. 4,501 of 2024, which lays out the framework for establishing what would be called the Sovereign Strategic Reserve of Bitcoins, or RESBit.
The proposal seeks to formally integrate Bitcoin into Brazil’s broader financial strategy, positioning the cryptocurrency as a component of the country’s national reserves. The initiative is associated with Federal Deputy Luiz Gastão, while the bill itself is authored by Federal Deputy Eros Biondini.
Lawmakers argue that holding BTC could help shield Brazil’s international reserves from currency volatility and geopolitical risks. In addition, the reserve would support the development and credibility of Brazil’s central bank digital currency (CBDC), the Digital Real — also known as Drex — by providing an additional layer of backing.
The proposal sets a clear limit on the scale of the initiative. RESBit would be capped at up to 5% of Brazil’s international reserves, and any purchases would be carried out gradually under a structured acquisition plan.
The bill emphasizes that the program must adhere strictly to the country’s Fiscal Responsibility Law, ensuring that Bitcoin purchases do not jeopardize public accounts or fiscal stability.
The Bitcoin bill also proposes the formation of a specialized advisory committee composed of experts in digital economy, blockchain technology, and cybersecurity. It also allows for the creation of inter‑institutional working groups to coordinate implementation and oversight.
But beyond reserve management, the proposal outlines broader measures designed to strengthen Brazil’s digital asset ecosystem. The text envisions educational initiatives and workforce training programs focused on blockchain and digital security, including the training of public servants.
It also encourages the development of startups in the crypto and blockchain sectors and calls for investment in robust technological infrastructure to support innovation and secure operations.
Supporters of the bill argue that the concept draws on international precedents. The author cites examples such as El Salvador, the United States, China, Dubai, and the European Union, where governments have incorporated cryptocurrencies or blockchain technology into public policy in varying ways.
According to the proposal’s rationale, integrating digital assets into national strategies can promote financial inclusion, attract investment, strengthen technological capabilities, and offer additional protection against exchange‑rate shocks.
The bill’s backers also point to Brazil’s strong domestic adoption of cryptocurrencies as a foundation for leadership in the region. They contend that a strategic Bitcoin reserve could position the country at the forefront of digital finance in Latin America.
As of this writing, BTC has surged to the upper limit of its consolidation range, reaching $69,000. It has registered gains of 5% within the last 24 hours.
Featured image from OpenArt, chart from TradingView.com
