Brazil is progressing with the RESBiT bill (Bill 4501/2023), which proposes investing up to 5% of the nation’s foreign exchange reserves in Bitcoin. This strategic initiative aims to diversify sovereign assets and signals growing institutional acceptance of digital currencies within traditional finance frameworks.
Unlike El Salvador’s adoption of Bitcoin as legal tender, Brazil’s approach focuses exclusively on reserve management. The cautious allocation strategy emphasizes treasury diversification rather than transactional use, positioning Bitcoin as a hedge against inflation and currency volatility.
The proposal acknowledges inherent risks including Bitcoin’s price fluctuations and cybersecurity challenges at a national scale. While the bill has cleared its initial committee review, it requires further legislative approval before implementation.
If enacted, Brazil could emerge as a leader in sovereign digital asset adoption, potentially influencing other nations to explore similar reserve diversification strategies using cryptocurrency.