Brazil Moves to Introduce Bitcoin Reserves…"Up to 5% of Foreign Exchange Holdings Allowed"

Brazil is officially considering the introduction of national Bitcoin reserves (RESBit).

According to Binance News on the 12th (local time), the bill proposed by federal lawmaker Eros Biondini allows the Central Bank of Brazil to accumulate Bitcoin, permitting up to 5% of foreign exchange reserves. Additionally, the Central Bank of Brazil and the Ministry of Finance are required to implement strict security protocols, such as Cold Wallets, to manage the reserves and submit audited transparency reports to Congress every six months.

Brazil’s House Committee on Economic Development responded positively to the bill. Bill rapporteur Luis Gastão emphasized, "Bitcoin reserves can help Brazil diversify its assets and reduce dependency on fiat currency."

Currently, the bill requires additional approvals from committees on technology, constitution, and finance. If finally passed, Brazil will become the second country in the world, following El Salvador, to legally introduce Bitcoin reserves.