Brazil's lower house committee approves the Bitcoin Strategic Reserve Fund bill.

## Brazil’s movement accelerates

On June 12, the Economic Development Committee of the Brazilian Chamber of Deputies approved the Bitcoin Strategy Reserve Fund Bill “4501/2023”. The bill establishes a national reserve fund called “RESBiT” and allows for holding up to 5% of foreign reserves in Bitcoin.

The bill 4501/2024 submitted by Congressman Eros Biondini stipulates the “formation of sovereign reserves of Bitcoin by the federal government and other measures.” It has received approval from two committees in the House of Representatives, passing an important stage towards becoming law.

The bill proposed last November designates the Central Bank of Brazil and the Ministry of Finance as the managing entities of reserves, and mandates the implementation of strict security protocols through cold wallets. It also includes provisions for submitting audited transparency reports to Congress every six months.

The reserves play a role in protecting national sovereign assets from currency fluctuations and geopolitical risks. The country is also considering utilizing them as collateral for the central bank digital currency “Real Digital (Drex)” currently under development, aiming for a trading system incorporating blockchain and AI technology.

The bill will go through the process of being enacted after discussions in the Senate and presidential signature. As Bitcoin reserves are garnering political interest in several countries, including the United States, Brazil’s movements may influence cryptocurrency policies in the South American region.